Cheapest States for Car Insurance in the U.S. This Year

Car insurance rates vary dramatically by state, with the most affordable states offering premiums nearly 60% lower than the most expensive. Based on 2024 data, drivers in Maine enjoy the nation's lowest average rates at $858 annually, while Michigan residents pay the highest at $2,693 per year for equivalent coverage.

Three key factors determine why some states have significantly lower insurance rates: no-fault vs. tort insurance systems, state-mandated minimum coverage requirements, and local risk factors like population density and weather-related claims. States with rural populations, low crime rates, and fewer uninsured drivers typically offer the most affordable premiums.

Top 5 Cheapest States for Car Insurance (2024)

1. Maine: $858/year - Low population density and few uninsured drivers
2. Vermont: $924/year - Rural roads and strong insurance regulations
3. Ohio: $1,001/year - Competitive insurance market with many providers
4. Idaho: $1,023/year - Low traffic congestion and accident rates
5. Wisconsin: $1,051/year - Tort system with damage caps reduces claims

Most Expensive States for Car Insurance

- Michigan: $2,693/year - Unlimited PIP coverage requirement
- Florida: $2,560/year - High fraud and uninsured driver rates
- Louisiana: $2,546/year - Frequent severe weather claims
- New York: $2,471/year - High population density and repair costs
- Nevada: $2,305/year - Tourist-heavy areas with more accidents

How to Save on Car Insurance Regardless of State

Increase Deductible: Raising from $500 to $1,000 can save 15-30%
Bundle Policies: Combine auto with home/renters insurance for discounts
Maintain Good Credit: Most states allow credit-based insurance scoring
Ask About Discounts: Good driver, low mileage, defensive driving course
Compare Quotes Annually: Rates change frequently - don't auto-renew