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Cheapest States for Car Insurance: Quotes, Discounts for 2022

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Maria Sanchez

By: Maria Sanchez

Edited by Jackie Cohen

Last Updated May 16, 2022

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The cost of insurance premiums depends on a number of factors. Where you live can determine how much you pay for your auto insurance policy because some places are seen as more expensive states than others. Even though some states have higher rates than others, there are ways of finding auto insurance premiums that provide adequate coverage and don’t break the bank.

Insurify can help you look up affordable auto insurance quotes so you can drive with the peace of mind of knowing that you’re covered. The fear of expensive car insurance shouldn’t keep you from being protected on the road. Use our tools to get side-by-side comparisons in minutes, all for free. Getting good coverage on your auto insurance policy shouldn’t cost you an arm and a leg.

Factors That Contribute to the Cost of Car Insurance

There isn’t one set price that every single person pays for a car insurance policy. Every person pays a different price because car insurance companies take each individual’s unique profile into account when figuring out how much to charge. A number of factors go into these calculations to make sure that the cost accurately reflects how risky a driver is.

There are a number of rating factors that car insurance companies use to determine the cost of your premium. Simply put, the less risky your rating factors are, the cheaper your auto insurance policy will be. Some factors are weighted more heavily than others, like whether you have a clean driving record. Alternatively, gender and marital status are considered less.

Here is a list of factors that auto insurance companies use to determine the cost of your policy:

Driving history

Simply put, the more car accidents, violations, and claims you have on your driving record, the higher your policy will cost. Car insurance companies use your history to calculate how risky of a driver you are, which predicts your future on the road. Reckless driving, tickets, and DUIs all negatively impact your chances at saving.

Credit score

People might disregard how important their financial health is when calculating something like the cost of an auto insurance policy, but research shows that drivers with poor credit file more claims than drivers with good (or relatively better) credit. Insurance companies typically see “bad credit” as a rating between 300 and 579. “Good credit” is between 580 and 800.

Age

This is a significant rating factor that mostly impacts young drivers, who are new on the road. It is tied to years of driving experience, where the more experience you have on the road, the less likely you are to make mistakes while driving. The most expensive insurance policies are usually paid by teen drivers, while drivers over 50 years old pay the least.

Insurance companies see teen drivers as the riskiest and most expensive policyholders to insure. Data shows that teen drivers are the most reckless and get into more accidents than any other age group. Thankfully, young drivers can start seeing more savings at the age of 20, and rates get even better at age 25. Premiums reach the lowest for drivers in their mid-50s, before becoming more expensive again for drivers who are 70 years and older.

Location

Two pieces of your location are taken into consideration: state and ZIP code.

State

Each state has its own laws to regulate insurance policies that auto insurance companies need to take into account. For example, some states are no-fault states and require all drivers to add unlimited personal injury protection (PIP) onto their policy. Policyholders in these states can expect to pay more for their coverage because of the added unlimited PIP.

Insurance requirements and state minimums vary by state, so ask an agent what you might need in terms of collision coverage, comprehensive coverage, property damage liability, bodily injury liability, and more. Full-coverage car insurance isn’t necessary for everyone, and removing it can help cut costs.

ZIP code

Your neighborhood can also determine how much you pay. In most cases, insurance costs more in places that have more drivers, like urban areas, because a higher concentration of drivers means a higher risk of accidents. Living in areas that are more prone to natural disasters, like floods or fire, or crimes, like vandalism or theft, will also cause your policy to go up.

Gender

This factor mostly impacts young drivers because insurance companies see young male drivers as significantly more reckless. This makes them more prone to risk, and therefore, they are more expensive to insure. Young female drivers are seen as relatively safer than young male drivers, which gets them lower rates.

Marital status

This has a minimal effect on how much you pay for your policy, but data shows that married drivers file fewer claims. This might be because partnerships are more likely to split up driving and tasks, causing less of a reason to get behind the wheel. There is a very minor difference in rates for married, divorced, single, and widowed drivers.

Vehicle

If you drive a brand new sports car, chances are that your premium will be more expensive than if you drive an old Honda Civic, for example. Cars that cost more to replace and repair also cost more to insure. Expensive vehicles are usually charged more for collision coverage and comprehensive coverage in their insurance premiums.

The same person can get different insurance quotes from different companies. This is why it’s important to shop around when looking for a policy. Every insurance company has its own way of calculating how much car insurance premiums cost, but they usually take the same factors into account when deciding how much—or how little—it will be.

States with the Cheapest Car Insurance

What are the cheapest states for car insurance?

On average, drivers in Hawaii, North Carolina, Maine, New Hampshire, and Idaho see the cheapest monthly rates for car insurance. However, drivers in every state can save on car insurance by exploring discounts and comparing quotes from multiple insurance companies.

Price shouldn’t be the reason you go without a car insurance policy. Auto insurance is mandated by law in all but two states (Virginia and New Hampshire). Still, having insurance coverage can keep you and others safe on the road. Affordable car insurance quotes are just a few clicks away.

StateAverage Monthly Cost of Car Insurance
Hawaii$105
North Carolina$127
Maine$129
New Hampshire$130
Idaho$131
Vermont$135
Indiana$137
Ohio$141
South Dakota$143
North Dakota$144
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

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Cheapest Car Insurance Companies in Every State

If the state you live in isn’t one of the cheapest states to get car insurance in, don’t worry! We put together a list of the cheapest car insurance companies in every state to make sure that people don’t run the risk of being uninsured drivers, no matter where they live. Keep in mind that these are just average car insurance rates, and there are always other ways to save with discounts.

StateInsurance CompanyAverage Monthly Cost of Car Insurance
AlabamaNational General$107
AlaskaMidvale Home & Auto$161
ArizonaMile Auto$118
ArkansasProgressive$118
CaliforniaTravelers$135
ColoradoSun Coast$146
ConnecticutKemper$135
Washington, D.C.Travelers$156
DelawareMidvale Home & Auto$221
FloridaAssuranceAmerica$167
GeorgiaProgressive$147
HawaiiFarmers$101
IdahoTravelers$72
IllinoisUSH&C$44
IndianaTravelers$91
IowaTravelers$91
KansasTravelers$123
KentuckyProgressive$150
LouisianaNational General$200
MaineKemper$71
MarylandTravelers$181
MassachusettsTravelers$64
MichiganSafeco$198
MinnesotaKemper$123
MississippiNational General$100
MissouriTravelers$122
MontanaTravelers$104
NebraskaTravelers$96
NevadaSun Coast$168
New HampshireTravelers$92
New JerseyPlymouth Rock$179
New MexicoProgressive$97
New YorkTSC Direct$138
North CarolinaDirect Auto$63
North DakotaMidvale Home & Auto$118
OhioTravelers$85
OklahomaProgressive$118
OregonMetromile$83
PennsylvaniaMetromile$84
Rhode IslandSafeco$166
South CarolinaKemper$125
South DakotaMidvale Home & Auto$126
TennesseeNational General$96
TexasMile Auto$123
UtahSun Coast$95
VermontTravelers$94
VirginiaMetromile$63
WashingtonMetromile$87
West VirginiaProgressive$118
WisconsinTravelers$94
WyomingSafeco$106
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

Why Auto Insurance Rates Vary from State to State

Not only do auto insurance rates vary from person to person, but they also depend on where you live. You can read above for the factors that insurance companies use to determine someone’s unique rate, but know that location is one of the big reasons why you might be paying more or less for your policy.

Car insurance laws vary by state

Each state has its own laws that regulate insurance policies. Auto insurance companies need to take this into account and will adjust the policies they offer—and their prices—depending on minimum requirements. No-fault states might require all policyholders to include other add-ons with their policy, which causes them to pay more for coverage due to the extra requirements.

Your state is more prone to natural disasters

Unfortunately, residents who live in areas that are more likely to be hit by natural disasters, like floods, landslides, or wildfires, can expect to pay more for their policies. Car insurance companies see policyholders as more expensive to insure if they need to worry about the cost of replacing or repairing cars hit by weather-related incidents.

Urban areas cost more than suburban areas

Your specific neighborhood and ZIP code can determine how much you pay in insurance. Policies cost more in cities with more drivers because more people on the road means a higher chance of accidents. Areas with more people might also be more likely to get hit by vandalism and theft, which can also cause your policy to go up.

Frequently Asked Questions

  • While Hawaii is known for sky-high real estate prices, it’s the cheapest out of all 50 states for car insurance. On average, Hawaii residents can expect to pay around $105 per month for a policy, which is much cheaper than the national average cost of around $234 per month.

  • Each state has its own requirements and laws that determine the minimum coverage that motorists need in order to drive legally. Insurance providers in each state need to abide by these laws and will adjust the prices of their policies in order to include all types of coverage.

  • Insurify is the number one place to find the best—and cheapest—car insurance in your state. In minutes, we comb through hundreds of insurance companies to give you a list of affordable rates. This way, you know you’re getting the best coverage that won’t break the bank.

Compare Cheap Car Insurance Quotes in Your State

How much you pay for your car insurance policy depends on a number of factors: your unique driving history, age, credit history, and more. Usually, location plays a big part in determining how much—or how little —you pay. But even if your state isn’t one of the cheapest, there are still ways to save on your policy.

Insurify can help you find cheap car insurance rates in just a few minutes. We do all the work to pull together quotes from hundreds of insurance companies in the market so you don’t have to worry. With discounts and side-by-side comparisons, we make it as easy as possible to get an affordable insurance policy that gives you peace of mind on the road. Get your free quote today!

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Methodology

The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Maria Sanchez
Maria Sanchez

Content Writer at Insurify

Maria Sanchez is a freelance writer from Boston. Specializing in educational content, she enjoys making information accessible to the greater public. In her spare time, she enjoys playing piano, hosting dinner parties, and volunteering.

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