Top 10 Cheapest States for Car Insurance: 2017

Jason Siu
by Jason Siu

If you’re looking to save money on auto insurance, you may want to move.

Although auto insurance rates are based on a variety of risk factors, your location is normally a big factor for auto insurance companies. Each year, Insure.com publishes a study that compares car insurance rates by state and this year’s study has been released.

SEE ALSO: Top 10 Most Expensive States for Car Insurance: 2017

The average annual insurance premiums were calculated based on rates from six large carriers: Allstate, Farmers, GEICO, Nationwide, Progressive, and State Farm. Rates were compiled in May 2017 and include 10 zip codes per state. Rates are based on full coverage for a single, 40-year-old male who commutes 12 miles to work each day, with policy limits of $100,000 for injury liability for one person, $300,000 for all injuries, $50,000 for property damage in an accident, and a $500 deductible on collision and comprehensive coverage. The hypothetical driver has a clean record and good credit, and the rate includes uninsured motorist coverage.

Here are the top 10 cheapest states for car insurance:

10. Utah

Kicking off the top 10 cheapest states for auto insurance list is Utah, with an average annual premium of $1,068.


9. South Dakota

South Dakota edges out Utah with an average annual rate of $1,058.


8. Virginia

Virginia lands in eighth place this year, where residents can expect to pay $1,040 annually for car insurance.


7. Indiana

With an average annual premium of $1,021, Indiana is the seventh-cheapest state in the U.S. for auto insurance this year.


6. Iowa

The difference isn’t by much, but Iowa finishes sixth with an average annual insurance cost of $1,017.


5. North Carolina

Drivers in North Carolina can expect to pay an average of $1,010 each year for auto insurance.


4. Vermont

The following four states all have average annual premiums of less than $1,000, with Vermont costing $948.


3. Idaho

Idaho has the cheapest car insurance in the western U.S., with an average annual premium of $942. The state benefits from a rural population, moderate weather, and a competitive marketplace says Insure.com.


2. Ohio

Strong competition in the auto insurance market in Ohio contributes to its low costs with an average annual premium of $919. Ohio Department of Insurance Director Jillian Froment also says that Ohio has “fair and vigilant regulations” that help support customers.


1. Maine

But if you’re looking for the cheapest annual insurance rates in the U.S., then Maine is the place to be. The quiet, rural, and truly tranquil state benefits from a lack of huge urban areas to keep auto insurance costs low. This year it took the top spot with an average annual premium of $864, which is 34 percent less than the national average of $1,318.

Jason Siu
Jason Siu

Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.

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