It Costs Less To Insure Your Car in These 35 States

Cynthia Measom

Fri, Dec 20, 2019, 5:00 AM

Taking the time to shop for the best car insurance rates is important — especially when you could save hundreds of dollars per year. Even in states that have annual average rates that are way above the national average, cheap auto insurance is available. All you have to know is which car insurance companies to shop.

For example, even though the average annual premium in Michigan exceeds the national average of $1,470 by over $1,000, residents can potentially find car insurance quotes for less than $400 per year.

To help you save the most money, GOBankingRates evaluated the average annual car insurance premiums in all 50 states using data from The Zebra to find out where it costs less to insure your vehicle. All states were then ranked based on each state’s average insurance cost versus the national average annual insurance cost.

Data is accurate as of August 22, 2019, and is subject to change.

North Carolina

Average annual insurance premium: $865

North Carolina has the cheapest annual insurance premium on the list — $605 less than the national average of $1,470. If you’re shopping for car insurance in this state, Progressive offers an average annual premium of $645 — the lowest among all major providers — whereas Dairyland charges a staggering amount on average: $6,574 annually.

Virginia

Average annual insurance premium: $901

Virginia’s average annual premium is $569 less than the national average. The best car insurance premiums can be found at Travelers, which average $666 annually. In stark contrast, Dairyland has the most expensive average annual premiums at $3,494.

Maine

Average annual insurance premium: $927

Residents of Maine can call themselves lucky because the average annual insurance premium is over $543 less than the national average of $1,470. The most expensive average auto insurance premium is once again offered by Dairyland — $2,988 — while the cheapest comes via Travelers at $618 per year.

Iowa

Average annual insurance premium: $1,015

USAA at $676 and Partners Mutual at $691 offer the cheapest annual insurance premiums, on average. The two most expensive providers in the state are Dairyland and Safeco, which have average annual premiums of $2,244 and $2,126, respectively.

Idaho

Average annual insurance premium: $1,018

On average, residents of Idaho pay $452 less than the national average for their annual insurance premiums. American National charges only $242 annually, while Dairyland’s yearly premium totals a whopping $12,000.

Vermont

Average annual insurance premium: $1,027

The cheapest average annual insurance premium for residents of Vermont is offered by Safeco at $472. In contrast, Union Mutual has the most expensive average yearly premium at $2,017.

Ohio

Average annual insurance premium: $1,037

The top five lowest average annual insurance premiums in Ohio range from $641 to $719, with Utica National offering the lowest rate. The top five highest annual premiums — on average — range from $1,477 to $3,221, with Dairyland Insurance yielding the most expensive rate.

Wisconsin

Average annual insurance premium: $1,040

The average annual insurance premium in Wisconsin is $430 lower than the national average. Within the state, USAA takes the top spot for the cheapest insurance premium, on average, at $592.

Hawaii

Average annual insurance premium: $1,079

Hawaii doesn’t have as many insurance providers to choose from as some of the other states do. USAA offers the best average annual insurance premium at $945, whereas AIG charges the most, totaling an average yearly cost of $2,421.

New Hampshire

Average annual insurance premium: $1,083

New Hampshire residents can find car insurance way below the national average of $1,470. Concord and Travelers offer the lowest average annual premiums in the state at $574 and $709, respectively. Nationwide, however, offers average premiums that are $6,010 annually.

Utah

Average annual insurance premium: $1,112

Utah’s average annual insurance premium comes in $358 lower than the national average. Bear River offers the lowest average annual premiums in the state at $578, while Liberty Mutual and Encompass offer the highest: $1,859 and $1,955, respectively.

Illinois

Average annual insurance premium: $1,120

The five lowest average annual insurance premiums in the state of Illinois range from $761 to $906, with The Hartford offering the most affordable rate. Meanwhile, the five highest average annual insurance premiums range from $2,002 to $3,265, with First Chicago Maverick being the most expensive.

Indiana

Average annual insurance premium: $1,133

Travelers Insurance offers the most affordable average annual insurance premium in the state of Indiana at $608 annually. Dairyland’s average insurance premiums are much higher, however, and equal the most expensive in the state at $4,471 annually.

Alaska

Average annual insurance premium: $1,152

Like Hawaii, Alaska doesn’t have a lot of options when it comes to car insurance providers. At $883 per year, Umialik comes in hundreds below the national average, however. And Safeco, even though it’s the state’s most expensive provider, still has a much lower annual premium — $2,476 — than many of the other 49 states’ most expensive providers.

Washington

Average annual insurance premium: $1,160

Washington’s average annual insurance premium is $310 below the national average of $1,470. Premiums offered to residents by providers range between $769 and $4,017, with Capital taking the least expensive spot and Sentry holding the most expensive spot.

Nebraska

Average annual insurance premium: $1,184

Nebraska residents have a wide range of car insurance providers they can choose from — unlike some states. For the least expensive average annual premiums, American National ranks No. 1 at just $336 per year. And the Auto Club Group ranks as the most expensive at $2,626 annually.

Massachusetts

Average annual insurance premium: $1,201

For Massachusetts residents, the most affordable average annual insurance premiums can be found with State Farm, at $726 annually. In contrast, Encompass has the most expensive average annual premiums at $1,858.

North Dakota

Average annual insurance premium: $1,230

The average annual insurance premium in North Dakota is $240 less than the national average. The cheapest ones in the state are offered by USAA, at $718, while Dairyland offers the most expensive ones, at $5,145.

Maryland

Average annual insurance premium: $1,240

The two lowest average annual insurance premiums in the state are offered by USAA and Liberty Mutual at $939 and $1,103, respectively. The two highest average annual premiums are offered by Encompass and Victoria, at $2,541 and $2,993, respectively.

Arizona

Average annual insurance premium: $1,247

Average annual car insurance premiums for residents of Arizona range between a low of $536 to a high of $2,687. The Hartford takes the least expensive spot, whereas Dairyland ranks as the most expensive.

Minnesota

Average annual insurance premium: $1,258

If you happen to be a resident of Minnesota, average annual premiums could run anywhere from $654 to $3,503, depending on the provider. In this state, Travelers offers the cheapest average rate, whereas Liberty Mutual offers the most expensive.

South Dakota

Average annual insurance premium: $1,268

In South Dakota, the average annual insurance premium is $202 less than the national average. Residents in this state can receive average yearly premiums from USAA at $644, far below the national average.

Tennessee

Average annual insurance premium: $1,315

Utica National and Auto-Owners offers two of the lowest average annual insurance premiums in the state at $752 and $844, respectively. The two highest premiums come from Safeco at $2,315 and Dairyland totaling $4,428.

New Mexico

Average annual insurance premium: $1,331

New Mexico residents can find average annual insurance premiums ranging from $670 to $3,145. USAA offers the most affordable rate, while Sentry offers the most expensive premium.

Missouri

Average annual insurance premium: $1,334

In Missouri, the most expensive average insurance premiums come from Dairyland, totaling $3,378 annually. USAA, however, offers the most affordable rates in the state at $655 per year.

Wyoming

Average annual insurance premium: $1,338

The average annual car insurance premium in Wyoming doesn’t fall too far below the national average of $1,470, but USAA provides residents a much more affordable premium of $637. In contrast, Allstate offers the most expensive premium at $2,083 per year on average.

Alabama

Average annual insurance premium: $1,358

The three cheapest average annual insurance premiums in Alabama are offered by Travelers, Cincinnati Insurance and USAA, which range from $799 to $913. The three most expensive insurance providers are Farmers, Safeco and Liberty Mutual, which offer residents of the state average premiums of $1,893 to $2,664 annually.

South Carolina

Average annual insurance premium: $1,361

Just because the average annual insurance premium in South Carolina is close to the national average doesn’t mean there aren’t some great deals to be had. For example, The Hartford’s average annual premium for residents of the state is only $760, and USAA’s average premium is $1,005 per year.

Oregon

Average annual insurance premium: $1,377

Residents of Oregon have a wide variety of major insurance providers to shop, and the three cheapest all offer average rates under $850 a year. Grange offers the cheapest premium at $701, while Oregon Mutual comes in at $836 and Country at $839.

West Virginia

Average annual insurance premium: $1,378

The average annual insurance premium in West Virginia is $92 below the national average. But Erie insurance offers residents of the state an average annual premium of $922, which is hundreds of dollars cheaper.

Georgia

Average annual insurance premium: $1,388

Major insurance providers for the state of Georgia offer average annual premiums ranging from below $900 to more than $3,000. Companies, such as Auto-Owners and The Hartford are the most affordable, with premiums of $847 and $904, respectively.

Kansas

Average annual insurance premium: $1,427

Kansas residents have a variety of choices when it comes to major insurance providers. USAA offers the most affordable average annual insurance premium at $758, whereas Dairyland’s average rate is the most expensive at $5,512.

Pennsylvania

Average annual insurance premium: $1,433

Residents of Pennsylvania have a choice of 36 major insurance providers when shopping for car insurance. Average annual premiums range from $733 to $5,639. General Casualty, Travelers and USAA are the three most affordable insurers.

Colorado

Average annual insurance premium: $1,435

The average annual insurance premium in Colorado hovers just $35 below the national average, but residents can find a more affordable deal. For example, The Hartford offers an average annual premium of $842, and Grange’s average premium is $968.

Arkansas

Average annual insurance premium: $1,458

Arkansas’ average annual insurance premium is the closest to the national average without exceeding it — at just $12 below. Both USAA and Auto Club, however, offer premiums that are hundreds of dollars less than the average across America at $1,001 and $1,025, respectively.

States That Didn't Make the Cut

Not every state in the U.S. offers car insurance rates that are more affordable than the national average. Here’s a look at the states that have the most expensive average annual insurance premiums.

Oklahoma

Average annual insurance premium: $1,542

Oklahoma’s average annual insurance premium is $72 more than the national average. But there are six major insurance providers that offer rates that are lower: USAA, Oklahoma Farmers Union, The Hartford, Geico, Safe Auto and Farmers.

Connecticut

Average annual insurance premium: $1,544

Connecticut’s average annual insurance premium is $74 more than the national average, but Utica National offers a much cheaper premium of $784 a year. The most expensive average premium offered to Connecticut residents, however, is from none other than Dairyland, which totals $3,744 annually.

New York

Average annual insurance premium: $1,582

In the state of New York, the average annual insurance premium is $112 above the national average of $1,470. Residents can snag a slight discount, however, by shopping the six providers in the state that offer cheaper average premiums: USAA, Erie, Utica National, Progressive, Travelers and Allstate.

Montana

Average annual insurance premium: $1,615

Just because the average annual premium in Montana tops the national average by $145 doesn’t mean that residents of the state can’t find a much better deal. For example, Safeco offers an average annual rate of only $549.

New Jersey

Average annual insurance premium: $1,679

With an average annual insurance premium of $209 above the national average, residents of New Jersey might think snagging a much better deal is hopeless. Not so. Six of the 24 major insurance providers in the state offer yearly premiums that fall below the national average — some hundreds of dollars cheaper.

Delaware

Average annual insurance premium: $1,700

Even though Delaware’s average annual insurance premium exceeds the national average by $230, much cheaper rates can be found. For example, USAA offers residents of the state an average annual premium of $760.

California

Average annual insurance premium: $1,713

In California, the average annual insurance premium is $243 above the national average. Residents can still find better deals, however. Seven of the 25 major insurance providers in the state offer yearly premiums below the national average.

Mississippi

Average annual insurance premium: $1,800

Even though the average annual insurance premium in Mississippi is $330 above the national average of $1,470, residents can find cheaper rates elsewhere. For example, USAA offers an average annual premium of $823.

Nevada

Average annual insurance premium: $1,802

Even though Nevada’s average annual insurance premium didn’t come in below the national average, over half of the major insurance providers — 11 out of 21 — have rates that do. For example, Travelers, Allied and Capital offer yearly premiums below $1,000.

Texas

Average annual insurance premium: $1,810

Texas is a big state, and so is its average annual insurance premium — totaling $340 above the national average. Much cheaper options are available in the state, however. Like Travelers, which offers an average annual premium of $1,031, or USAA’s rate of $1,106.

Florida

Average annual insurance premium: $1,878

In Florida, it can pay off handsomely to shop around if you don’t want to get stuck paying an insurance premium that’s $408 above the national average. USAA offers residents the best price at $967 annually, on average.

Rhode Island

Average annual insurance premium: $2,004

Rhode Island’s average annual insurance premium exceeds the national average by $534. But USAA offers residents an average annual rate of $712, and State Farm’s average premium is $1,117.

Kentucky

Average annual insurance premium: $2,050

In Kentucky, you could get stuck paying almost $600 more than the national average for insurance — but you don’t have to shell out that much if you know where to look. Cincinnati Insurance offers an average annual premium of $1,104, and Kentucky Farm Bureau’s average rate is $1,151.

Louisiana

Average annual insurance premium: $2,225

Louisiana’s average annual insurance premium exceeds the national average by $755. No major insurance providers for the state offer a yearly rate that’s less than the national average, but residents can still find premiums under $2,000. For example, USAA offers an average annual premium of $1,610 and MetLife’s rate comes in at $1,873.

Michigan

Average annual insurance premium: $2,610

At $1,140 above the national average, Michigan’s average annual insurance premium is the highest out of all of the states. There are seven major insurance providers that offer premiums below the national average of $1,470, however. Safeco’s average annual premium is only $368.

More From GOBankingRates

Methodology: GOBankingRates determined where it costs less to insure your car by evaluating all 50 states in terms of their average annual car insurance cost, sourced from The Zebra on Aug. 5, 2019. States were then ranked by the savings based on paying the state average insurance cost versus the national average annual car insurance cost of $1,470 a year.