States With Cheaper Car Insurance


Everyone of our fifty states require drivers to have car insurance.  They each mandate at least a minimum amount of coverage each driver needs to carry.  The insurance may be provided by a licensed insurance company or a driver or company may be able to prove that they have the ability to be self insured.  Usually insurance needs to cover at least total bodily injury, per person bodily injury and property damage.

Other factors which contribute to car insurance rates include the safety of individual drivers and the driving environment in a particular state.  They take into consideration the number of auto thefts, the percentage of uninsured drivers and the number of competing car insurance companies.  Lawsuits also drive up the cost of car insurance.

The population of an area is factored into insurance premiums.  In places where they are fewer people insurance rates tend to be less.  If most driving is done in a heavily populated area then the rates are higher.

The state tax in an area also contributes to your car insurance rate.  It probably does not show on your bill as cost for state tax rather it may show as a fee or surcharge.


Insurance companies are in business to make a profit  They need to balance the risk they take by insuring a car with the premiums you pay.  The premiums collected are invested and the money is used to pay claims.  The total  premiums collected must be greater than the claims paid out.

Regardless of where you live your driving habits will have a big impact on your insurance rate.  Good drivers will pay less than careless drivers no matter where they live.

In 2014 average insurance rates depending on the area ranged from a low of $950 in Ohio to a high of $2,500 in Michigan.  These yearly rates where based on a 40 year old driver commuting 12 miles to work with basic required coverage of $100,000 liability coverage for one person injured, $300,000 for all persons injured and $50,000 for property damage.

Currently the five states with the lowest car insurance rates are Ohio, Maine, New Hampshire, Idaho and Iowa.

The ranking for automobile insurance rates changes every year due to the changes in the state regulations and the changes in trends of groups of local drivers.