Cheapest auto insurance companies by state

With inflation at a 40-year-old high, the cost of pretty much everything is spiking. This includes the cost of car insurance. Insurance.com’s 2022 analysis reveals that the average auto insurance premium in 2022 for a good driver with clean credit costs $1,758 a year, or $146 per month. 

Nationwide, car insurance rates were predicted to increase an average of 5.4% over the course of the year, according to S&P Global Market Intelligence. The cheapest car insurance in your state will depend on personal factors, but, we’ve gathered the average car insurance rate for major insurers by state. Insurance.com's rate analysis ranks the car insurance companies by price so you can quickly find the best deals.

Cheapest car insurance companies by state

Car insurance rates vary from state to state. Whether you’re considering a move or are just curious about the states with the cheapest car insurance, check out this interactive map, which shows you the cheapest car insurance by state based on a 2022 Insurance.com rate comparison.

In the chart below, you'll see the average rate for the following liability limits – liability coverage pays for injuries/damage you cause others. You'll also see the average rate for full coverage car insurance, which includes comprehensive and collision and pays for damage to your car:

Full coverage 100/300/100 means:

• Bodily injury liability – $100,000 per person/$300,000 maximum per accident for bodily injury
• Property damage liability – $100,000 for property damage
• Comprehensive and collision coverage with $500 deductible

Enter your state in the search field to see average rates by company. Then, you'll see a rate analysis of up to six major insurers in nearly every ZIP code of that state.

*Rates were fielded by Quadrant Information Services in 2022 from up to six major insurers in nearly every ZIP code of each state. Driver profile: male, age 40, clean record and good credit, with a 12-mile commute to work. Full coverage of 100/300/100 with comprehensive and collision; $500 deductible.

Which state has the cheapest car insurance?

Among the top insurers that were included in our analysis, the cheapest car insurance by state varies. Above, we looked at the cheapest car insurance companies by state, but which state is cheapest overall? Take a look at the average cost of car insurance for both a state minimum policy and full coverage below based on a 2022 rate analysis by Insurance.com. Comparison of the average car insurance rates by state

*Full coverage of 100/300/100 with comprehensive and collision; $500 deductible.

Cheapest states for full coverage car insurance

Here are the five cheapest states for state for full coverage car insurance (annual rates):

• Ohio: $1,023
• Maine: $1,116
• Idaho: $1,121
• Vermont: $1,158
• Oregon: $1,244

Most expensive states for full coverage car insurance

On the flip side, here are the most expensive states for full coverage car insurance (annual rates):

• Florida: $2,560
• Louisiana: $2,546
• Delaware: $2,137
• Michigan: $2,133
• California: $2,115

Why do car insurance rates differ from state to state?

Location can impact car insurance rates because the risks are different based on a variety of factors. That's why you'll find insurance rates differ from state to state. It also explains why the cost of car insurance from the same insurance company also changes depending on the state you live in.

Here are a few location-based reasons car insurance rates differ across states:

• Crime rates. Areas more prone to theft and vandalism are more expensive than safer ones.
• Population density. Urban areas tend to have higher claims rates than small, rural areas, likely due to increased traffic.
• Number, frequency, and cost of claims. The greater prevalence and cost of claims in a given area can bump up your car insurance.
• Weather trends. Areas more prone to severe weather and damage due to these trends will also be more expensive. In turn, areas that are less prone to severe weather might have cheaper insurance.
• The cost of medical care and car repairs. These costs vary by state and can also affect the cost of car insurance. 

How to find the cheapest car insurance coverage in your state

Besides using our handy tools, you'll want to start by shopping around to get the cheapest car insurance. Gather at least three quotes to compare similar liability limits and deductibles.

Other ways to save on your car insurance include:

Looking for discounts. Insurers typically offer several ways to save on your car insurance, such as:

• Bundling your policy with homeowners/renters insurance
• Being a safe driver and maintaining a clean record
• Installing anti-theft devices
• Setting up autopay
• Getting insurance through a group affiliation
• Not putting a lot of miles on your car
• Staying with the same insurer for several years

Maintaining strong credit. Insurers might use what's known as a credit-based insurance score to place you in a risk category and to figure out the cost of your insurance. Like a consumer credit score, this is a three-digit number. There are only a few states where this is not legal.

Choosing a high deductible. A higher deductible means a lower monthly premium. However, you'll want to make sure you have enough money in the bank to cover your deductible should you need to file a claim.

Purchasing barebones insurance. If you drive an older car, purchase only liability coverage and skip the comprehensive and collision insurance. Let's say your car is more than 10 years old or worth less than $3,000. In that case, you might not need full coverage. And if you don't drive your car often, you might be able to squeak by with cheap state minimum car insurance.

Review your policy at least once a year. You can switch car insurance policies and insurers at any time. Use that to your advantage and save some money that way. Check your policy to make sure it's a good fit for you. Maybe you've driven far less in the past year. In that case, you might want to switch to a low-mileage policy. Next, gather a few quotes from your current insurer and competitors. Just make sure it's the same coverage types and coverage limits.

Frequently asked questions: Car insurance rates by state

Sources:

• National Association of Insurance Commissioners. "Understand How Credit Scores Affect Premiums." Accessed July 2022.
• Insurance Information Institute. "How to save money on car insurance." Accessed July 2022.
• Insurance Information Institute. "What determines the price of my auto insurance policy." Accessed July 2022.
• S&P Global Market Intelligence's annual U.S. Auto Insurance Market Report

Resources & Methodology

Insurance.com commissioned Quadrant Information Services in 2022 for rates from up to six major insurers in nearly every ZIP code of each state. Driver profile: male, age 40, married, clean record and good credit, driving 2016 Honda Accord. Full coverage of 100/300/100 with comprehensive and collision; $500 deductible.