Cheapest car insurance rates by state

Cheapest car insurance rates by state and company

To compare car insurance rates by state, take a look at the table below. You'll find the cheapest car insurance companies in each state for full coverage car insurance, which includes comprehensive and collision and pays for damage to your car:

Full coverage 100/300/100 means:

• Bodily injury liability – $100,000 per person/$300,000 per accident for bodily injury
• Property damage liability – $100,000 per accident for property damage
• Comprehensive and collision coverage with $500 deductibles

Choose your state from the dropdown menu to see average rates by company. You'll see a rate analysis of up to six major insurers in nearly every ZIP code in that state.

*Rates were fielded by Quadrant Information Services from up to six major insurers in nearly every ZIP code of each state. Driver profile: male, age 40, clean record and good credit, with a 12-mile commute to work. Full coverage of 100/300/100 with comprehensive and collision; $500 deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim..

Lowest car insurance rates by state

Maine is the cheapest state for full coverage insurance, with annual average rates of $1,175. That’s $720 less than the national average. Full coverage includes the required minimum liability coverage as well as collision and comprehensive, which covers repairs to your vehicle and medical payments for you or another party injured as a result of the accident.

New Hampshire is a close second for the state with the cheapest full coverage car insurance rates. The average cost for full coverage car insurance in NH is $1,265 a year, which is  $630 less than the national average.

The cheapest state for minimum liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people. is Iowa, with annual average rates of $260. This is the bare minimum of coverage to get you on the road. Most experts recommend purchasing more insurance, as the minimum coverage doesn’t pay for damage to your vehicle and only covers damage to someone else’s person or property.

Take a look at the table below to see average annual rates for each state, for minimum liability insurance and full coverage insurance. Remember, these are average costs – actual costs depend on factors individual to you.

Note that state minimums for car insurance are increasing in 2025 in California, North Carolina, Utah and Virginia, which will increase the cost of a minimum coverage policy.

States with the cheapest car insurance

The top five states with the cheapest car insurance rates are Maine, New Hampshire, Vermont, Ohio and Idaho. In Maine, the average rates for full coverage car insurance are $720 lower than the national average, and the state minimum liability insurance is $308 less than the national average. There are significant savings in the other four states as well.

Take a look at the table below to see how the rates stack up in the five cheapest states. 

States with the most expensive car insurance

Louisiana, Florida, California, Michigan and Colorado have the most expensive car insurance. Why are these states more costly than others? Weather, traffic, claims, litigation costs, and the number of uninsured drivers all play a part in determining insurance rates.

In Louisiana, you’ll pay about $988 more a year than the national average for full coverage insurance and $219 more for the state minimum coverage. In Florida, expect to pay $799 more for full coverage and $490 more for the state minimum. 

Take a look at the table below to see how the most expensive states stack up when it comes to prices.

State minimum coverage requirements

Each state has a minimum liability of insurance you must carry in order to be legal on the road. This is the bare minimum of insurance required to drive and only covers injuries to other people if you are involved in an accident and damage to their property, although in some states it also covers your injuries. It doesn’t cover you or your vehicle at all, so most insurance professionals recommend purchasing more coverage such as collision and comprehensive, depending on your situation. 

Take a look at the table below, which shows the state’s minimum liability coverage

Cheapest car insurance rates by state and driver profile

Your driver profile—or driving record—affects your car insurance rates in a big way. Things like speeding tickets, accidents and DUIs will increase your rates. The cheapest rates in each state will depend heavily on your driver profile or driving record. Take a look at the table below to see how different negative marks on your driving record will affect your rates.

Why do car insurance rates differ from state to state?

According to Brenda Wells, director of the risk management & insurance program at East Carolina University, the following are some of the major reasons why car insurance rates vary so much from state to state:

• Traffic patterns and driving in general can vary from place to place, resulting in different accident rates.
• Weather and climate in some states (such as heavy ice, flooding, etc.) will vary, and that means claims will vary, which affects rates.
• The cost of living varies from state to state, so, for instance, a doctor's bill in North Carolina might be $100, and in California, it might be $200. This affects the cost of claims, which affects rates.
• The legal system in each state can vary (and also can vary by county.) For instance, in Texas, there are some counties where it’s just understood that the insurer will lose if a lawsuit occurs. In other places, it might be just the opposite. Lawsuits and the settlements that result from them directly impact the cost of claims. The rules of law can also vary from place to place, affecting how lawsuits are conducted and resolved and again impacting claims costs. 

How to find the cheapest car insurance coverage in your state

To find the cheapest car insurance coverage in your state, you'll want to do the following:

• Shop around to compare multiple quotes. Gather at least three quotes to compare similar liability limits and deductibles. You can switch car insurance policies and insurers at any time. 

• Look for discounts. Insurers typically offer several types of discounts, so ask which may apply to you
  • Bundling discounts– combining home and auto
  • Safe driver discounts
  • Discounts for anti-theft devices
  • Autopay discounts
  • Discounts through a group such as AAA
  • Low mileage discounts
  • Customer loyalty discounts- staying with the same insurer for many years
• Be a safe driver and avoid tickets. This is one of the best things you can do to keep your rates down. Just one speeding ticket can increase your rates by as much as 25%.
• Maintain strong credit. Insurers might use what's known as a credit-based insurance score to place you in a risk category and to figure out the cost of your insurance. Like a consumer credit score, this is a three-digit number. There are only a few states where this is not legal.
• Choose a higher deductible. A higher deductible means a lower monthly premium. However, you'll want to make sure you have enough money in the bank to cover your deductible should you need to file a claim.
• Purchase liability-only insurance. If you drive an older car, purchase only liability coverage and skip the comprehensive and collision insurance. This only applies if you own your car outright.
• Review your policy at least once a year. Review your policy annually to make sure it still meets your needs and look for any discounts you might be missing.

Car insurance rate trends by state

If you take a look at the table below, you can see how car insurance rates have trended up or down in the last few years. Overall, with a few exceptions, prices were higher in 2019, decreased in 2022 and rose again in 2023.

California is one state where rates have steadily increased. The same is true in Florida.

Car insurance rates by state: Frequently asked questions

Below are some of the most commonly asked questions about car insurance rates.

Why is car insurance so expensive in Florida?

Car insurance is expensive in Florida due to several factors, according to Wells. They include the weather, a high rate of uninsured drivers, traffic and litigation costs.

How can I find the lowest car insurance rates in my state?

To find the lowest car insurance rates in your state, shop around for multiple quotes. Don’t stop at the first company, because prices can vary greatly. Ask about every available discount you might qualify for. Using an online tool can make it easier.

Is it cheaper to pay my car insurance premium monthly or annually?

If your car insurance company charges a service fee to bill you monthly, then paying annually is cheaper. Some insurance companies give a paid-in-full discount so ask if that’s available to you. Otherwise, rates should be the same.

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