The Most and Least Expensive States for Car Insurance

April 29, 2016

Did you know that where you live has a major impact on how much you pay for car insurance? The difference between the most expensive state and least expensive state for car insurance is about $1,700. That’s a big difference. So why does where you live matter? Which states have the most expensive car insurance and which states have the least? We’ve got your answers here.

Why Does Where you Live Affect your Auto Insurance Rates?

Which states have the cheapest car insuranceThere’s a lot that goes into how much you pay for car insurance and the state you live in is just one small part of that equation. Your auto insurance rates are based on your age, location, the car or cars you drive, and sometimes even your credit score. The study from which we drew our information assumes the same basic information from all drivers. The prices for the states we offer here are based on a 40-year old male with policy limits of 100/300/50. So if you don’t match that description, then odds are you’ll be paying a different amount. Using just a single “profile” for conducting the research helps ensure that when you compare prices, you’re comparing the same thing. We know, it’s complicated, but it’s good information to have.

What makes one state more expensive than another?

There’s a lot to consider when calculating the risk for a person. There’s even more to consider when calculating the risk for an entire state. What’s the traffic like? What’s the average commuting distance? How many accidents are reported each year? That’s just the tip of the iceberg. All of these questions have answers and it’s the insurance company’s job to calculate them all and then figure out the odds of you being involved in an accident. Think that’s a lot of work? They’ll also need to know the odds of you being in a certain type of accident (a drunken driving incident, single driver, multi-car pileup, etc.).

Another major factor that can determine whether a state has the highest or lowest car insurance rates is required coverage. Depending on which state you live in, you could be required to carry a different minimum level of liability insurance, or extra coverages such as

So which states have the highest and lowest car insurance rates?

states with the most expensive car insuranceAfter reviewing the data, we have a clear winning and a clear… well, “not winner”. Maine is hands down the cheapest state in the US for car insurance. Using our driver profile that we mentioned before, and getting quotes from 10 different insurers using 10 different zip codes, the average auto insurance rate was $934 a year. Sounds good doesn’t it?

The most expensive state for car insurance was Louisiana. Using the same process, the average auto insurance premium in Louisiana is $2,699. That means that the average difference between living in Maine and living in Louisiana is roughly $1,700 for the same person (that person being our made-up driver).

How can you avoid paying high insurance rates?

Our best piece of advice is to compare auto insurance quotes online. You might be surprised how much you can save by using a different insurance company. You can learn more about that in our article on comparing auto insurance. Another great way to keep your insurance costs down is to look for auto insurance discounts. You may qualify for car insurance discounts based on your employer, where you went to school, fraternities or sororities to which you belong, clubs, and associations, as well as for good driving, avoiding accidents, or getting good grades in school. Check with your current insurer to see if there are any discounts for which you qualify, but aren’t currently getting.  We realize where you live is one of the least changeable factors that affect your auto insurance rates, so try these steps to see if you can find a car insurance payment that fits your budget.

The Easiest Way to Save on Car Insurance

Several studies have shown that drivers who compare car insurance quotes save up to 32% on average. Drivers who have been with their auto insurance provider for more than 7 years can save up to 40% when they compare auto insurance quotes. Even if you live in, or are moving to a state with high insurance costs, you can still pay less than most other drivers.

Do yourself a favor and compare car insurance quotes today.

Learn More About Auto Insurance

When it comes to auto insurance, there are a lot of variables, a lot of unfamiliar terms, and a whole lot of peculiarities – particularly when you consider that each state has its own insurance market. Our Auto Insurance Explainers can help sort it out for you, and make more educated decisions about your car insurance.

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