7 States with Cheap Car Insurance

In real estate, as well as in car insurance, the three biggest factors are location, location and location. In fact, in some states, the average annual car insurance premiums are almost three times as high as the states with the lowest.

For those on the move and who are hunting for value, the following states offer the lowest average prices for car insurance.

7. Massachusetts

PRICE: $1,043.80

Photo source: nationalgeographic.com

The great state of Massachusetts makes the list for multiple reasons, none of them having to do with a tendency towards sailing over driving. With the exception of Boston, much of the already tiny state of Massachusetts is rural.

While this doesn’t affect the population much (as it is the 14th most populated and 3rd most densely populated state in the union), it does affect things like average commuting distance and miles traveled annually, two factors which greatly influence insurance costs.

It is also one of the wealthiest states in the union, with the median income hovering around $50,000. Rich people tend to be older people with good jobs, and older people with good jobs tend to drive much more safely.

6. Iowa

PRICE: $1,039.04

Photo source: growabrain.typepad.com

Aside from the fact that Iowa is flat and boring geographically, it also happens to be thinly populated. Iowa is the 26th largest state in the union, but only contains 0.97% of the US population.

Fewer drivers mean fewer accidents, and areas containing a majority of rural roads (such as Iowa) boast fewer claims per year than their urban counterparts. All of these things lead to lower insurance rates, which is why Iowa is among the lowest.

5. New Hampshire

PRICE: $1,011.23

Photo source: visitusa.com

Not only is New Hampshire small geographically, small in population, and really hard to find on a map, but it also underperforms the US average in just about every traffic statistic available.

Fewer people die, drive drunk, or are busted for not wearing seatbelts in New Hampshire than in most places in America. This low average for traffic accidents makes it a safe place to drive, and therefore a cheap place to insure a car.

4. Wisconsin

PRICE: $1,010.93

Source: Zonie

Residents of America’s Dairyland, Wisconsinites enjoy fresh cheese, delicious milk, and some of the lowest car insurance rates available in the country. Wisconsin is a primarily agricultural state, with the exception of a few major cities.

Because cities like Milwaukee and Green Bay are exceptions and not the majority, the state average stays pretty low for those looking to insure their cars.

Wisconsin’s lightning fast legal system helps keep premiums low as well, as claims are less likely to be drawn out ordeals.

3. Ohio

PRICE: $999.86

Photo source:  travel.nationalgeographic.com

Why not just round-up to 1K? Because it’s not 1K; that’s why. While the Cavs may never win a championship, at least they know that they can insure their team bus for less than the rest of the league.

Ohio’s healthy economy, low annual accident rates and complete lack of a successful sports team means that there are fewer riots, arguments over parking, or reasons to worry when it comes to automobile risk. All of these lead to lower rates, which lead to happy Ohioans.

2. Vermont

PRICE: $968.58

Photo source: havayati.co.il

The little state that could, Vermont has size working in its favor. The 2nd least populated (behind only Wyoming), it enjoys the 2nd lowest car insurance premiums in the nation.

Vermont’s virtually deserted roads (statistically speaking) make this state a breeze to insure for any company looking to play the numbers.

1. Maine

PRICE: $902.85

Source:  Dougtone

The absolute lowest car insurance rates in the nation can be found in Maine. Bordered on two sides by Canada, and on one by an ocean, Maine is like America’s attic. There is literally no reason to travel through Maine unless you are living there or visiting.

Unlike states such as Ohio or Iowa, where a large bulk of highway travel is done on a “just passing through” basis, Maine has nowhere to pass through to. This lack of interstate travel is just one additional factor that helps make Maine the cheapest state in the union for car insurance.


Regardless of where you live, car insurance is a sizable expense. For those looking to relocate, these cities can take cost down a notch, while also giving you piece of mind.

Check out our related posts:

Speak Your Mind