The Top 5 Least Expensive States for Car Insurance

October 29, 2019

Car insurance is the law. If you drive, you need it, no matter where you live. The amount you’ll need may vary by state, but you need it no matter what. Most people need more than the state’s minimum requirements. They want more coverage to protect them financially in the face of an accident.

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Unfortunately, car insurance can get expensive. Below are the top ten states with the cheapest car insurance.


Maine has the cheapest car insurance rates in the United States. You can thank the low rates on:

  • Low crime rates – few thefts
  • Low rates of uninsured drivers

Oddly enough, Maine has some of the highest requirements for liability insurance coverage compared to other states in the US. Drivers must carry bodily injury, property damage, and uninsured motorist coverage by law.


Virginia has a lot of insurance carriers in the small state. The competition alone is enough to bring the rates down. Virginia’s government also heavily regulates the insurance rates, which helps keep them low.

The state of Virginia requires drivers to carry bodily injury or death coverage as well as property coverage. Virginia does have a $500 uninsured motorist waiver too. After buying the waiver, you can legally drive; however, we don’t recommend driving without insurance as the financial obligation can be huge.

North Carolina

North Carolina is a highly rural state, which keeps decreases the risk of theft and lowers insurance premiums. North Carolina is also highly regulated, so insurance companies have a ‘cap’ that they can charge. In order to stay competitive, many insurance companies offer heavy discounts. In fact, there are more than 2,000 different available discounts on car insurance in North Carolina.


Iowa is one state that doesn’t have minimum insurance requirements. They also have some of the largest variances found when shopping around. Just because the rates vary so much, it’s important to shop around. Even though Iowa doesn’t have minimum insurance requirements, you should have insurance for the financial protection. If you cause an accident, you must show proof of financial ability to cover the damages right away. If you don’t, you can lose your license.

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A lot of Idaho’s residents are older, which means lower car insurance rates. Unfortunately, the younger you are, the more you pay for car insurance. The older average age, though, brings the Idaho average car insurance rate down quite a bit.

Idaho also has short commutes. Its largest city – Boise, has one of the shortest commutes in the United States. Insurance companies take all of this into consideration when determining car insurance premiums, which is why Idaho is one of the lowest.

How to Get the Lowest Rates

No matter which state you live, there are ways to get cheap car insurance. Just use the following tips:

  • Shop around – Don’t settle for the first quote you receive. Get at least three or more quotes to see what other agencies offer. You may find significant savings just by shopping around.
  • Inquire about discounts – You won’t know until you ask. Some insurance companies offer bundled discounts, safe driving discounts, or pay in full discounts. Ask about every discount available to see if you qualify.
  • Take a higher deductible – The higher your deductible, the more you’ll save on your premiums. Don’t take an unaffordable deductible, obviously, but take one that is just high enough to bring your premiums down.
  • Ask about different coverage options – Don’t take a policy at face value. Ask the agent about the coverages provided. You may not need all of them. You may also be able to trim some of the coverage down. For example, if you have an older car, collision coverage may not be worth it.
  • Watch your driving record – The better your driving record, the lower premiums insurance companies can offer. Your driving record gives insurance companies an idea of your level of risk. Bad drivers mean more accidents. More accidents mean higher premiums.
  • Pay your bills on time – Insurance companies may check your credit. They only look to see how well you pay your bills. Late payments may mean that you are irresponsible. Insurance companies don’t want to take a chance insuring you on the road, so they may charge more.

Car insurance is mandatory, even if your state doesn’t require it. Without insurance, you could find yourself in severe debt if you cause an accident. Find the insurance that is the most affordable, yet provides quality coverage should you need it in the future.

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