Cheapest car insurance rates by state in 2024

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

Above, we looked at the cheapest car insurance companies by state, but which state is the cheapest overall? Take a look at the average cost of car insurance for both a state minimum policy and full coverage below based on a rate analysis by Insurance.com.

*Full coverage of 100/300/100 with comprehensive and collision; $500 deductible.

Cheapest states for full coverage car insurance

Here are the five states with cheapest car insurance (annual rates):

• Maine: $1,175
• New Hampshire: $1,265
• Vermont: $1,319
• Ohio: $1,417
• Idaho: $1,428

Most expensive states for full coverage car insurance

On the flip side, here are the highest car insurance rates by state (annual rates):

• Louisiana: $2,883
• Florida: $2,694
• California: $2,416
• Colorado: $2,337
• South Dakota: $2,280

Why do car insurance rates differ from state to state?

Location can impact car insurance rates because the risks vary. That's why you'll find insurance rates differ from state to state. It also explains why the cost of car insurance from the same insurance company also changes depending on the state you live in.

Here are a few location-based reasons car insurance rates differ across states:

• Crime rates. Areas more prone to theft and vandalism are more expensive than safer ones.
• Population density. Urban areas tend to have higher claims rates than small, rural areas, likely due to increased traffic.
• Number, frequency and cost of claims. The greater prevalence and cost of claims in a given area can bump up your car insurance.
• Weather trends. Areas more prone to severe weather and damage due to these trends will also be more expensive. In turn, areas that are less prone to extreme weather might have cheaper insurance.
• The cost of medical care and car repairs. These costs vary by state and can also affect the cost of car insurance. 

How to find the cheapest car insurance coverage in your state

Besides using our handy tools, you'll want to start by shopping around to get the cheapest car insurance. Gather at least three quotes to compare similar liability limits and deductibles.

Other ways to save on your car insurance include:

Looking for discounts. Insurers typically offer several ways to save on your car insurance, such as:

• Bundling your policy with homeowners/renters insurance
• Being a safe driver and maintaining a clean record
• Installing anti-theft devices
• Setting up autopay
• Getting insurance through a group affiliation
• Not putting a lot of miles on your car
• Staying with the same insurer for several years

Maintaining 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.

Choosing a high deductible. A higher deductible means a lower monthly premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods.. However, you'll want to make sure you have enough money in the bank to cover your deductible should you need to file a claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing..

Purchasing barebones insurance. If you drive an older car, purchase only liability coverage and skip the comprehensive and collision insurance. Let's say your car is more than 10 years old or worth less than $3,000. In that case, you might not need full coverage. And if you don't drive your car often, you might be able to squeak by with cheap state minimum car insurance.

Review your policy at least once a year. You can switch car insurance policies and insurers at any time. Use that to your advantage and save some money that way. Check your policy to make sure it's a good fit for you. Maybe you've driven far less in the past year. In that case, you might want to switch to a low-mileage policy. Next, gather a few quotes from your current insurer and competitors. Just make sure it's the same coverage types and coverage limits.

Our recommendation

For comprehensive car insurance protection, we recommend opting for full coverage car insurance. Full coverage typically includes liability insurance, collision coverageCollision coverage helps pay for repairs or replacement of your car if it's damaged in an accident, regardless of who is at fault and is subject to a deductible., and comprehensive coverage. 

While getting less coverage — such as the state minimum — will cost less, you could end up spending a lot more in the long run if you’re in an accident. There are better ways to save. Here are some tips to help you find the best rates:

• Shop around. Different insurers offer different rates for the same profile. Compare quotes from multiple insurers to find the most competitive rate.
• Bundle policies. Many insurers offer discounts if you bundle your car insurance with other policies, such as homeowners or renters insurance.
• Maintain a clean driving record. Drivers with no recent accidents or traffic violations typically qualify for lower premiums.
• Increase your deductible. Opting for a higher deductible can lower your premium, but be sure you can afford the out-of-pocket cost if you need to file a claim.
• Look for discounts. Ask about available discounts, such as those for safe drivers, low-mileage drivers, or vehicles with safety features.
• Improve your credit score. Insurers often consider your credit score when determining rates. A better credit score can lead to lower premiums.

By combining full coverage with strategic shopping and discounts, you can achieve comprehensive protection for your vehicle at an affordable rate.

Resources & Methodology

Sources

National Association of Insurance Commissioners. "Understand How Credit Scores Affect Premiums." Accessed July 2024.

Methodology

Insurance.com commissioned Quadrant Information Services in 2023 to field rates from up to six major insurers in nearly every ZIP code of each state. Driver profile: male, age 40, married, clean record and good credit, driving 2023 Honda Accord. Full coverage of 100/300/100 with comprehensive and collision; $500 deductible.

Frequently asked questions: Car insurance rates by state

What is one of the most expensive states for car insurance?

The most expensive state for car insurance is Florida, although Louisiana, Delaware, and Michigan are also at the top of the list.

How can you manage your insurance when moving to a new state?

Contact your insurance company immediately to inform them of your new address and moving date. Then, gather quotes from at least three insurance companies to determine the cheapest company for your needs. The policies and coverage limits should be identical. You might be able to stay with your current insurance company if they provide coverage in that state, but your coverage limits will need to be updated to match the minimum requirements in your new home state.

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