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What Are the Cheapest States for Car Insurance (and How Can You Find a Great Deal)?

Moneymagpie Team 1st Nov 2022 No Comments

Reading Time: 3 minutes

If you live in a high-crime neighborhood, you could pay more for car insurance than you would if you lived in a more secure neighborhood, even when the neighborhoods are in one state. But the geographical influence on the cost of premiums is more significant if moved across states.

If you want to move states, it’s essential to consider how the move will impact your insurance rates and finances. If insurance rates are a factor when choosing the state to move to, this guide highlights five states with the cheapest car insurance rates you may consider.

New Hampshire
New Hampshire is one of the two states with the most relaxed car insurance laws. But even then, you will be liable for damages resulting from accidents where you are at fault, so driving without insurance is not a good idea.

Car insurance is pretty cheap in New Hampshire. You can have full car insurance for as little as $680. The average rate in this state is $940, almost $600 lower than the national average.

Maine is renowned for its delectable lobsters, beautiful coastal forests, and rocky coastline. Besides the features and attractions in the state, it ranks high in the list of states with the cheapest car insurance nationally.

If you are looking for the lowest premiums, you can get full coverage at as low as under $600, but the state’s average rate is around $990, over $500 lower than the national average.

Ohio, also known as the Buckeye State, is famous for producing seven of the 44 presidents of the United States. The average rate for full coverage in this state is $1,010, approximately $500 lower than the national average. If the state average feels too high a price, you can choose cheaper options that can go as low as slightly over $700.

However, it’s essential to strike a balance between quality of service and fees when choosing a car insurer. The best approach to finding car insurance that works best for Ohio drivers would be to compare all the insurers within your budget. Range and go for one that fits you best based on your circumstances without compromising the quality of services you get.

Car insurance laws in Virginia are almost as relaxed as those in New Hampshire. But unlike New Hampshire, drivers who wish to drive without a license must pay an uninsured motor vehicle fee of $500. This option is never a good idea because you will be liable for damages if you cause an accident.

The better option would be carrying the minimum coverage that could cost approximately $408 a year, 78% lower than the national average. If you choose full coverage, the average rate is $1,066, over $350 lower than the national average. If you want the cheapest option, it is possible to find an insurer that offers rates as low as $800.

If you love eating fries and other potato products, there is a high chance the potatoes were farmed in Idaho. According to statistics, Idaho is the highest potato producer in the country.

But potatoes are not all the state is good at; Idaho makes it to the list of states with the cheapest car insurance rates. Idaho has an average rate of $1,118, over $440 lower than the national average. The cheapest insurer in Idaho offers full coverage at slightly under $600.

How to Find a Good Insurance Deal

A good deal can be relative. What one person may call a good deal may not be good to another, depending on the factors every person is looking at. But there is a generally accepted standard for a good insurance deal, and here’s how to spot the best.

  1. Leverage Insurance Comparison Tools
    The best way to get a good car insurance deal is to leverage online insurance comparison resources. These tools help eliminate the worst deals, leaving you with a short list of insurance with a good balance between price and quality to pick from.
  2. Take Advantage of Discounts
    After identifying a good insurer based on your circumstances, the next step should be looking for car insurance discounts you could qualify for. Different companies offer discounts you could take advantage of to lower your premiums. Some standard discounts that apply to most insurers include good driver discounts for drivers that have driven for long periods without having a claim against their insurance. Other discounts include good student insurance, safe car discounts, defensive driving training discounts, carpooling discounts, and low mileage discounts.
  3. Get Referrals
    People that have experience with an insurer can be invaluable information resources about an insurer. So, it would help to ask about an insurer among friends, workmates, and family. If all you get about an insurer are negative sentiments, you should reconsider your choice.

Besides referrals, you should consider looking for reviews about an insurer on their website and other independent review sites. It would be best if you also considered checking out an insurer’s social media page to know the kind of experiences their clients have had through the sentiments posted.

DisclaimerMoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.


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Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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