Which state has the cheapest insurance?
When searching for insurance, it's important to find a balance between low cost and high-quality coverage. Geography plays a major role in determining rates. So which state has the most affordable car insurance? Keep reading to find out!
Why are insurance rates different per state?
When determining car insurance rates, several factors come into play. These include:
- Legal requirements: Each state has its own minimum coverage requirements, which can greatly impact your premium. For example, Michigan has a high premium due to its unlimited medical benefit coverage for car accident injuries.
- Population and urban areas: Densely populated states have a higher likelihood of accidents, theft, and vandalism, resulting in higher premiums.
- Climate: States with severe weather conditions, such as hurricanes or flooding, will have higher premiums due to the increased risk of comprehensive claims. Cold winters in states like Michigan also contribute to higher premiums due to the increased risk of accidents on icy roads.
- Competition: States with a high number of insurance companies tend to have lower premiums as competition drives prices down. In contrast, states with fewer insurance companies may have higher premiums as one company may have a monopoly on the market.
Cheapest state in order
- Vermont: With the second-lowest population in the United States, there are fewer people on the road and a lower chance of being involved in an accident.
- Idaho: A high level of competition among insurance companies and a low population density lead to great insurance offers for customers.
- Iowa: With a low number of uninsured motorists and shorter commutes, Iowa residents enjoy lower-than-average rates.
- Maine: A combination of rural areas, a low percentage of uninsured drivers, and strong competition among insurance companies results in low insurance premiums for residents.
- Wisconsin: With semi-rural areas and high competition among insurance companies, Wisconsin residents can find attractive offers.
- Ohio: Despite its high population, Ohio's infrastructure helps to avoid traffic jams, leading to a lower likelihood of accidents and lower insurance rates.
- Wyoming: With limited traffic on rural roads, a low population density, and a small percentage of uninsured motorists, Wyoming residents enjoy rates that are on average 48% lower than the national average.
- Indiana: The state requires only basic liability insurance, which combined with low crime and vandalism statistics results in a top ten state with the lowest insurance rates.
- Illinois: Despite its high population density, Illinois has a low percentage of uninsured motorists and high competition among insurance companies, resulting in low rates.
- Montana: With the third-lowest population density in the country, a low percentage of uninsured drivers, and low crime and vandalism statistics, Montana residents can expect attractive insurance rates.
What are some ways to ensure I get the best deal on my insurance?
Even if you live in a state with higher or lower insurance rates, there are still opportunities to save money on your coverage. The key is to know your options.
Researching multiple websites and inputting your information repeatedly to get quotes can be time-consuming. Luna simplifies the process by providing you with quotes from over 40 carriers in just a few minutes, all we need is your name, address and DOB. Luna will do the rest.
