Insurance Is High Everywhere. Where's It The Least High?
Car insurance premiums vary dramatically across the United States, shaped by local driving conditions, population density, weather, and competition among insurers.
We compared 2025 state-level averages reported by multiple public insurance rate studies to build this list, and the findings are not what we expected.
Maine: The Unbeatable #1 Bargain
Maine often takes the top spot for lowest average auto insurance premiums. Low congestion, fewer uninsured drivers, and strong competition among carriers help hold rates down. The state’s structure allows typical drivers a significant advantage in affordability.
Vermont: Small State, Big Savings
Vermont is consistently ranked among the very cheapest states for insurance. Its rural character, low claim severity, and competitive market help keep costs minimal. Drivers with clean records often enjoy quotes well below national averages.
New Hampshire: Freedom & Low Premiums
New Hampshire frequently appears in the top three cheapest states. Its unique “no mandatory insurance law” contributes to lower structural claim costs, though most residents still voluntarily buy coverage. This keeps statewide averages low.
Mikespenard, Wikimedia Commons
Idaho: Affordable in the Heartland
Idaho’s rural driving patterns and low crash frequency keep it firmly in the top five. Even in growing areas like Boise, statewide averages remain highly affordable. Many residents find broad coverage options well within budget.
Ohio: Midwestern Value Leader
Ohio consistently lands in the top five for affordability. Its regulatory stability, strong mutual insurers, and lower loss costs create some of the country’s cheapest coverage. Even in metro areas, full-coverage premiums are notably below national norms.
Nicholas J. Klein, Adobe Stock
Virginia: Discounts Meet Diversity
Virginia offers a balance of urban and rural pricing that keeps its statewide premiums low. While Northern Virginia drivers pay more, overall affordability is strong. Many residents also benefit from discount opportunities and competitive carrier options.
Bruce Emmerling, CC BY-SA 4.0, Wikimedia Commons
Washington: Savings Beyond Seattle
Washington ranks solidly in the top 10 for cheapest states. While Seattle’s congestion raises metro rates, drivers outside the city often enjoy very attractive premiums. The statewide average remains comfortably below the U.S. mean.
Daniel Schwen, CC BY-SA 4.0, Wikimedia Commons
Illinois: Affordable Except Chicago
Illinois belongs just inside the top 10. Rural and downstate drivers often enjoy very low rates, while Chicago’s congestion skews metro averages higher. Competition across carriers helps keep statewide averages affordable.
Andrew Horne, CC BY 2.0, Wikimedia Commons
Indiana: Steady & Budget-Friendly
Indiana maintains steady affordability. Moderate traffic volumes and competitive carriers help hold down costs. Rural residents often pay far below national norms, keeping the statewide average well positioned.
Hawaii: Island Savings Paradise
Hawaii consistently lands among the top 10 cheapest states. While parts availability can influence individual quotes, statewide averages remain low. Drivers across the islands typically find strong value in full-coverage packages.
Wisconsin: Cheese, Beer & Cheap Insurance
Wisconsin premiums fall significantly below the national mean. Strong safe-driver programs, competitive carriers, and dispersed traffic volumes all contribute to its affordability. Many residents benefit further from multi-policy discounts.
Iowa: Farm Roads, Low Rates
Iowa’s rural road network produces fewer high-severity crashes, lowering costs for carriers and drivers alike. Statewide averages remain comfortably below national levels, making Iowa one of the more budget-friendly states.
Grindstone Media Grp, Adobe Stock
North Carolina: Affordable in the Carolinas
North Carolina sits in the affordable third nationally. Favorable loss patterns and moderate weather keep average premiums below U.S. averages. While urban centers are pricier, statewide affordability is consistent.
Precisionviews, CC BY-SA 4.0, Wikimedia Commons
Utah: Scenic Drives, Cheaper Coverage
Utah’s statewide premiums average well below national levels. Suburban and rural driving patterns help manage claims, while strong competition keeps quotes attractive. This earns Utah a comfortable mid-teens ranking.
North Dakota: Cold Winters, Warm Savings
North Dakota’s sparse traffic and relatively low theft rates balance out its harsh winters. Although oil-patch regions sometimes see higher quotes, statewide averages remain well below national figures.
Wyoming: Wide Open Roads, Low Premiums
Wyoming’s low population density contributes to below-average premiums. Rankings can fluctuate due to the small population base, but affordability remains a constant for most drivers statewide.
Nebraska: Affordable on the Plains
Nebraska faces weather risks, but rural driving patterns and strong competition balance costs. Statewide averages remain below national norms, giving drivers reliable affordability.
Minnesota: Surviving Winters with Savings
Minnesota’s severe winters add risk, but strong infrastructure and competition keep premiums below national averages. The balance of urban and rural driving helps maintain its position among affordable states.
Oregon: Value in the Pacific Northwest
Oregon’s full-coverage costs remain comfortably under the national mean. Rural and suburban residents benefit most, while Portland’s congestion creates higher localized pricing. Statewide, it is still a strong value.
Spicypepper999, Wikimedia Commons
Pennsylvania: Keystone State Surprises
Pennsylvania averages below the U.S. mean, surprising many drivers in the Northeast corridor. Philadelphia and Pittsburgh are pricier, but statewide premiums remain solidly affordable, keeping it in the cheaper half.
South Carolina: Southern Savings
South Carolina’s statewide premiums average significantly below national figures. Outside of coastal and urban centers, drivers enjoy highly competitive quotes. It remains one of the more affordable Southeastern states.
Missouri: Show-Me State, Show-Me Savings
Missouri tends to hover just below the national average. Rural and suburban areas pull the mean down, even as Kansas City and St. Louis lift rates locally. It fits squarely into the “cheaper half.”
New Mexico: Budget-Friendly Southwest
New Mexico averages below national levels thanks to lower density and modest repair costs. While uninsured motorist rates complicate some regions, statewide affordability earns it a place on this list.
Arkansas: Natural State, Natural Savings
Arkansas typically posts rates just under the national mean, particularly outside Little Rock. Rural drivers with clean records often secure highly competitive quotes across the state.
Alaska: Last Frontier, Last on the List
Alaska rounds out the list with premiums often slightly under national averages. Remote repair logistics can drive up quotes in some areas, but the statewide average remains affordable enough for inclusion.
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