Top Ten States with the Cheapest Auto Insurance

 Top Ten States with the Cheapest Auto Insurance

Auto insurance is one of those things that we hope we never have to use, but at the same time, it’s an important thing to have on hand in case of any kind of accident or mishap. 

The cost of auto insurance varies from state to state, so if you’re looking to save money on your auto insurance, you should find out what the cheapest states are for auto insurance first. 

Here are the top ten states with the cheapest auto insurance available today. [ Add statistics and figures here ] . . .

Massachusetts

At just $750 a year, Massachusetts offers some of the cheapest car insurance around. Considering its high quality, comprehensive coverage, and low premiums, it’s not surprising that so many people live here. 

A high density of residents means fewer accidents overall. It also means more consumers pressure companies into lowering rates through competition. 

With more than 6 million residents, Massachusetts has no shortage of customers and insurers are responding to their needs. 

The number one insurer in the state is Geico—it’s not surprising since they have more policyholders than any other auto insurer in America! 

If you need car insurance quotes in MA—or just want to check prices—give them a call at 1-800-861-8380 today!

Montana

The state's required auto insurance coverage includes bodily injury and property damage liability, uninsured/underinsured motorist property damage liability, collision, medical payments (up to $4,500 per person), and up to $25,000 for injury or death of one person in an accident. 

Collision and comprehensive are optional. Drivers looking for cheap auto insurance can save money by purchasing a policy through AAA—the insurer offers three discounts that can be combined: safe driver, good student, and multiple policies. 

In Montana, drivers have an average premium of $1,293 annually—31 percent less than the national average. One reason why Montana drivers pay so little is that they’re not using their cars as much as in other states.

New York

If you’re looking for cheap auto insurance, New York is a great place to start. Based on average premiums per $100 of coverage, New York auto insurance rates rank as one of the cheapest in America. 

The average rate in NY is just $1.01, but in other states like Florida, drivers can expect to pay over five times more at an average premium of $5.27 per $100 coverage. 

Rates are all relative though – if you live and drive in a higher risk area, such as one near large cities or highways that experience heavy traffic, your monthly payment could go up considerably to help cover those higher risks.

Rhode Island

The state’s annual average premiums came out to $1,038.69, which was close to $300 less than the national average. 

There is no reason to blame bad drivers here—though Rhode Island did rank as one of America’s ten most dangerous states for driving—but rather point a finger at cheap auto insurance plans in place. 

Many companies offer discounted rates for good students and sometimes even reward safe driving habits. 

While we can’t promise you’ll get a deal like that, you can check out our helpful guide on how to get cheap auto insurance quotes in order to make sure your premiums stay low.

South Carolina

It’s not just because it has cheap gas; it’s also one of a few states that require drivers to have liability insurance. 

It's cheap for those who have at least $25,000/$50,000 in bodily injury coverage. If you can get over 50/100 insurance on your car, you could save on average $2,070 dollars per year. Average auto insurance premium = $947

Connecticut

Cheap auto insurance in Connecticut is one of its well-known perks, and residents have come to expect yearly savings upwards of $700. 

Most vehicles require no-cost liability coverage here, so if you’re looking for even more savings—whether it’s on a personal vehicle or one that you rent out to cover costs—consider dropping collision and comprehensive options. 

That said, if your vehicle does not yet have anti-theft features (like GPS tracking) or airbags installed, you may want to leave them on. 

If you’re trying to save money without compromising safety, stick with insurers like Amica Mutual and GEICO. Both companies scored five stars overall from J.D.

Iowa

The Bureau of Labor Statistics reports that Iowa has an average car insurance premium of $868, which is nearly 10 percent less than its neighboring states. 

The cheapest quotes in Iowa go to those living in Sioux City, Cedar Rapids, and Des Moines. However, those in Sioux City can find affordable rates from multiple carriers, making it a top contender for the most affordable auto insurance. 

Those in Cedar Rapids will have more options but should still find lower rates than their neighbors in Minnesota or Wisconsin. 

It’s also important to note that residents of towns with smaller populations will likely be able to negotiate a better rate because they won’t receive as much competitive pressure from local agents.

Alaska

Even when factoring in an average car insurance rate of $1,753, Alaska still makes it onto our list of top ten states for cheap auto insurance. 

That’s because car thefts are rare and property damage is covered by your policy (meaning you don’t have to pay for smaller damages). 

Even if you need comprehensive or collision coverage, you can save up to $400 over a five-year period. On average, drivers here pay just 1.42 percent more than they would in Wyoming or New Hampshire (the two cheapest states in America). 

Have questions about how much insurance coverage you need? You can compare quotes from multiple insurers on NerdWallet and get customized recommendations based on your vehicle type and other factors.

Kentucky

In Kentucky, auto insurance costs $1,017 annually on average—the cheapest of any state. Many factors contribute to such a low price tag. 

For one, Kentucky is a no-fault state; in many others like New York or Florida, where you can be held personally liable for damages caused in an accident that you’re involved in (no matter who was at fault), insurance companies know they have to pay more out-of-pocket expenses when cars are damaged. 

While that means cheaper premiums for consumers in states like Kentucky, it can make it harder to get personal injury lawyers to work cases there because there’s less money upfront to compensate victims.

Oregon

In Oregon, your auto insurance rate is determined by two factors: where you live and how much driving you do. 

If you spend a lot of time on or near public roads or highways, that’s an accident risk factor—and can increase your premiums. If your car has a high value, that too increases rates. 

There are some discounts available for collision coverage in Oregon; things like safety features like anti-lock brakes can help lower your premium. 

And, to keep your rates as low as possible (which we think is very important), we suggest looking into discounts such as avoiding tickets or finding good auto insurance companies online (shameless plug).