What state has the cheapest car insurance?

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses...

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UPDATED: Dec 8, 2016

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Here's what you need to know...

  • The state you live in is one consideration that will affect the cost of your car insurance premiums
  • Geographical and personal information will determine your car insurance rates
  • Shop around and compare rates

Which US state has the cheapest car insurance rates? It is difficult to extrapolate any relevant date from the generic comparison of average car insurance premiums across the country because the factors that go into any policy are unique to the driver.

The state you live in is one consideration that will affect the cost of your car insurance premiums, but it is a whole host of factors, geographical and personal, that will determine your car insurance rates.

Nevertheless, because you want to know, the cheapest state averages for last year go to Ohio and Vermont and those specifics and more are detailed below.

What you will pay for car insurance is based on your likelihood of getting into an accident wherever you may roam. Accidents are more likely to happen in populated areas than rural ones; they are more likely to occur with male drivers at the

Accidents are more likely to happen in populated areas than rural ones; they are more likely to occur with male drivers at the wheel, and they are more likely to be caused by young drivers.

If you are a 21-year-old male living in any American city, you can count on paying much more than the state average no matter where you live.

Other elements that insurance companies use to assess risk include marital status, history of accidents and driving violations, the make and model of the vehicle, as well as the occupation and credit rating of the driver.

Things as seemingly minor as two doors vs. four doors on the car of the insured will affect premiums.

Enter your zip code above in our free comparison tool and start comparing quotes now!

Auto Insurance Pricing Trends


With the above caveats explained, it is possible to get a general idea of insurance trends across the country by analyzing the cost of quoted car insurance premiums.

Data from car insurance comparison tools not unlike this one have been able to come up with averages based on more than a million quotes given out to consumers in a majority of the United States.

At the end of 2009, the cheapest car insurance premiums were claimed by residents of Ohio and Vermont. Rates in Ohio were 5.6 percent less than they were at the beginning of 2009, while Vermont rates were down 8.4 percent.

The average yearly premiums in those states were $1,251 and $1,306, respectively. The other states with the lowest average annual premiums were Idaho ($1,328), Maine ($1,331) and New Hampshire ($1,341).

The sharpest decline in prices took place in Wyoming, where the average annual car insurance premium fell 17.3 percent or $314.

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How can I find the cheapest car insurance?

By comparing car insurance online, you will have quick and easy access to quotes specific to your state, region, and personal circumstances.

Just type your zip code into the box in the upper right-hand corner and you will be on your way to finding the cheapest car insurance, fast!

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