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The 10 least expensive states for car insurance

If you live in one of these states, you could be getting a bargain on car insurance rates

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You may have shopped around for the best auto insurance deal, but have you shopped for the best state? Car insurance rates in the least expensive states can be 33 percent lower than the national average, and premiums in these states can be half the amount of premiums in the most expensive car insurance states. 

Each year the National Association of Insurance Commissioners (NAIC) puts together data on how much Americans are paying for car insurance. NAIC reports that, in general, you pay the lowest auto insurance rates in states where the following statements are true:

  • The population lives mostly in rural areas with little density
  • The roads feature low traffic levels and little congestion
  • The standard of living is low to moderate
  • The rate of auto thefts is modest
  • The state-mandated liability coverage levels are higher

While there are many ways to report and evaluate "cost", the NAIC surveys track annual dollar amount paid for car insurance premium. After all the numbers have been crunched, here are the ten states NAIC reports having the lowest auto insurance premiums:

South Dakota - if you live in South Dakota, you pay the lowest auto insurance rates of any group in the Uniteds. dakota has the nation's lowest car insurance coverage rates States. South Dakotans spend about $525 per year for car insurance.

North Dakota - the people of North Dakota pay just $4 more than their neighbors to the south each year for car insurance premiums. Premiums average $529 annually.

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Iowa - hawkeyes spend nearly $547 a year for car insurance. If you live in Iowa, you pay low rates for liability and collision coverage, but you pay over the national average for comprehensive insurance.

Idaho - drivers in Idaho shell out about $548 to insure their vehicles

Maine - premiums for Maine residents reach about $582 each year

Nebraska - cornhuskers spend $593 annually on auto insurance

North Carolina - one of only two East Coast states on NAIC's list of states with the least expensive car insurance rates, if you live in North Carolina, you can get car insurance for about $600 per year

Wisconsin - these residents pay about $613 for auto insurance premiums

Ohio - buckeyes spend about $619 annually. Liability, collision, and comprehensive rates are all below US averages

Wyoming - rounds out NAIC's survey of the ten least expensive states for car insurance rates. Here, drivers wyoming rounds out the list of the ten least expensive states for car insurancepay $621 per year.


If your home state missed the list, do not panic. Instead of relocating to get great car insurance rates in the least expensive states, you can find a bargain in your own neighborhood by speaking with an experienced car insurance agent. Reply! can help by linking you to insurance professionals in your area who can get you great coverage at a great price, whatever state you live and drive in.

Free Quotes! Click here to get Affordable Car Insurance rate estimates now!