Top 5 State With Cheap Car Insurance Online

Are you looking for cheap car insurance online? Or you are moving from one state to another and are unsure about the cost of your auto insurance. The state that you live in greatly impacts the amount you will eventually pay for car insurance. While some states have high insurance premiums, others have low insurance premiums

There are pros and cons to the state that you live in and it’s important to be well informed to make a wise decision when it comes to car insurance online.

As much as there are other different factors which affect your insurance premium like your driving history, your age, gender and more, the state that you live in is one of the biggest ones

Before moving or buying a vehicle, you have to do your research on the state that you live in and how much its auto insurance costs to prevent problems in the long run.

This article focuses on the top 5 least expensive states in the US and why there auto insurance prices are low compared to other states;

Rank State Full Coverage Minimum Coverage Difference
1 Maine $1,268 $489 $779
2 Hawaii $1,340 $475 $865
3 North Carolina $1,434 $542 $892
4 Iowa $1,482 $357 $1,124
5 Indiana $1,489 $498 $991

 

Maine

Maine has the lowest rates in the country, with an average minimum cost of online car insurance at $489 per year or sum of $41 per month. The state of Maine has the lowest percentage of drivers that are uninsured making it about 4.5% based on a study done by the Insurance Information Institute

Due to its low population making it safer to drive and the fact that it’s a rural state, drivers can avoid traffic and accidents hence a reduction in the level of claims leading to low insurance premiums

Another reason why the insurance rates aren’t as high is that Maine doesn’t usually experience floods, hailstorms or other natural disasters that lead to damages causing an increase in claims hence high online car insurance rates

Hawaii

Hawaii is also one of the states with low insurance rates. If you live in this state, it’s important to research to find the best cheap car insurance online to save money. Hence search quotes from different companies to get the best rate since they determine their premium on different factors. With an average rate of $475 per year, prices vary from company to company

Hawaii’s minimum car insurance requires you to follow the state’s car insurance laws. However, this doesn’t mean that the protection will be sufficient in case of an accident. You should therefore buy enough liability limits for each accident that will cover your net worth

The cheapest car insurance policy in Hawaii is USAA or Island Insurance. Hawaii requires a certain amount of liability coverage and personal injury protection providing for medical expenses for you and your passengers in case of an accident

North Carolina

The cheapest companies for car insurance online in North Carolina are Geico, Progressive and Erie and there average rates are $318 per year making it approximately $26 per month. These are 41% cheaper than the average minimum coverage in North Carolina which is $542

The average cost of full coverage is $1,434 per year or approximately $120 per month. North Carolina is a rural state with a cheap cost of living and few accidents.

There is healthy competition in the state of North Carolina which lowers the premiums and the number of uninsured drivers is also low

Iowa

With a minimum coverage of $357 making it about $30 a year and an average annual premium at $1,482, car insurance in Iowa is considerably affordable. You should be cautious when it comes to insurance since many factors may determine it like the coverage you select either full or minimum, policy or driving history

The most affordable carriers in Iowa are IMT Insurance (Wadena), Grinnell Mutual and State Farm. Iowa doesn’t require car insurance but only if you have an appropriate alternative. This means that you as the driver should show proof of financial responsibility in case of an accident by providing;

  • Proof of liability insurance
  • Bond Insurance Card
  • Or Security Insurance Card

Drivers pay low insurance premiums because the state is mostly rural with a low cost of living

Indiana

With a minimum average coverage cost of $498 per year or $42 per month, Indiana car insurance varies from company to company and city to city.

While some are cheap, others may be slightly higher. In the towns of Monroe and Wabash in the city of Berne, car insurance is cheap because of the low population and the rural lifestyle

The cheapest companies for minimum coverage are Erie, Auto-owners and Progressive with an average of $377 per year making it 24% less than the average of $498

Reasons for Low Car Insurance Rates

As already seen above, car insurance can be determined by different factors that include;

  • The states car insurance laws
  • The state’s economic conditions
  • The level of traffic congestion where if it’s low, then the insurance is low as well
  • The weather conditions in a state
  • The level of competition between insurance carriers

Bottom Line

It’s important to be aware of the state you live in, what factors increase its insurance rates and how it determines your insurance premiums. Some states have expensive car insurance while others have cheap car insurance online as explained above

 

Quotes Pilot content is not written by a licensed  insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for your situation