If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
Drivers in the U.S. pay about $2,646 per year, on average, for car insurance. But you'll find a huge variance in premiums for auto insurance by state. Below, we'll look at why and where you may want to begin your search for the cheapest car insurance in your state.
Insurance companies assign drivers premium costs based on their perceived risk. They look at individual factors, like the person's age, driving record, and even their credit score. But there are also local, state, and regional factors that affect how much drivers pay for auto insurance by state.
States that see frequent legal battles over car accidents usually have higher premiums because insurers know there's a risk they could be forced to pay out a large settlement in court. Areas that experience frequent weather, accident, theft, or vandalism claims also tend to have higher car insurance costs.
The five states with the cheapest auto insurance are all pretty spread out across the country. They're listed in order below, along with their average annual premium:
The five states with the most expensive average annual auto insurance premiums are concentrated in the eastern half of the country. They are:
Even within a single state, drivers pay a variety of rates. The guides below can help drivers find the cheapest auto insurance by state.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
