Cheapest States for Car Insurance

Where you live moves a car insurance premium more than almost anything else you control. The same driver, car and cover can cost well under half as much in one state as in another. The gap between the cheapest state and the most expensive one is currently more than $2,600 a year for full coverage.

The figures below are average annual premiums for a full-coverage policy (liability plus comprehensive and collision), from Experian's analysis of policies and quotes sold through its insurance marketplace over the 12 months to August 2026. The national average in that data is $2,922 a year. Alaska and Hawaii aren't included in the source.

The 10 cheapest states

New Hampshire — $1,523 a year (48% below the national average)
Vermont — $1,557 a year (47% below the national average)
Idaho — $1,560 a year (47% below the national average)
Wyoming — $1,615 a year (45% below the national average)
Maine — $1,708 a year (42% below the national average)
Iowa — $1,919 a year (34% below the national average)
South Dakota — $2,020 a year (31% below the national average)
New Mexico — $2,133 a year (27% below the national average)
Indiana — $2,156 a year (26% below the national average)
North Carolina — $2,190 a year (25% below the national average)

New Hampshire comes out narrowly cheapest in the state table, with Vermont and Idaho within $40 of it. Experian's own summary names Vermont first, so treat the top three as effectively tied: at that spread, your own record and ZIP code will matter far more than which of the three you live in.

The 10 most expensive states

Maryland — $4,181 a year (43% above the national average)
Massachusetts — $3,894 a year (33% above the national average)
Connecticut — $3,874 a year (33% above the national average)
Michigan — $3,862 a year (32% above the national average)
Georgia — $3,838 a year (31% above the national average)
Nevada — $3,706 a year (27% above the national average)
New Jersey — $3,696 a year (26% above the national average)
New York — $3,560 a year (22% above the national average)
Delaware — $3,510 a year (20% above the national average)
South Carolina — $3,457 a year (18% above the national average)

Why some states cost so much less

Insurers set rates from how often claims happen in an area and how much they cost to settle, so the cheap states tend to share the same traits:

Fewer cars per mile of road. Rural, lightly populated states see fewer collisions, fewer thefts and less vandalism. Six of the ten cheapest states are in northern New England or the northern Rockies and Plains, regions with small cities and relatively light traffic.
Lower claim costs. Repair labour, medical bills and legal costs vary by region, and every one of them feeds into what an insurer pays out per claim.
How the state handles injury claims. In no-fault states each driver's own policy pays their injury costs, and the required personal injury protection adds to the premium. Michigan, New York, New Jersey and Massachusetts are all no-fault states, and all four are in the most expensive group above.
Litigation and fraud. States where more claims end up with lawyers or in court, or where staged-accident fraud is common, carry that cost in every policy.
Weather. Hail, flooding and hurricanes drive up comprehensive claims, which is one reason several Southern states sit above the national average.

Every state, cheapest to most expensive

Rank	State	Average full coverage per year	Compared with national average ($2,922)
1	New Hampshire	$1,523	48% below
2	Vermont	$1,557	47% below
3	Idaho	$1,560	47% below
4	Wyoming	$1,615	45% below
5	Maine	$1,708	42% below
6	Iowa	$1,919	34% below
7	South Dakota	$2,020	31% below
8	New Mexico	$2,133	27% below
9	Indiana	$2,156	26% below
10	North Carolina	$2,190	25% below
11	Ohio	$2,221	24% below
12	Oklahoma	$2,230	24% below
13	Alabama	$2,282	22% below
14	Minnesota	$2,290	22% below
15	Montana	$2,319	21% below
16	Wisconsin	$2,329	20% below
17	District of Columbia	$2,338	20% below
18	Nebraska	$2,380	19% below
19	Utah	$2,452	16% below
20	Tennessee	$2,481	15% below
21	Kansas	$2,514	14% below
22	Oregon	$2,518	14% below
23	Arizona	$2,550	13% below
24	Mississippi	$2,551	13% below
25	Arkansas	$2,563	12% below
26	Illinois	$2,576	12% below
27	Colorado	$2,709	7% below
28	West Virginia	$2,724	7% below
29	Florida	$2,738	6% below
30	North Dakota	$2,794	4% below
31	Washington	$2,835	3% below
32	Virginia	$2,871	2% below
33	Texas	$2,891	1% below
34	Missouri	$2,902	1% below
35	Pennsylvania	$2,995	3% above
36	California	$3,001	3% above
37	Kentucky	$3,089	6% above
38	Rhode Island	$3,281	12% above
39	Louisiana	$3,322	14% above
40	South Carolina	$3,457	18% above
41	Delaware	$3,510	20% above
42	New York	$3,560	22% above
43	New Jersey	$3,696	26% above
44	Nevada	$3,706	27% above
45	Georgia	$3,838	31% above
46	Michigan	$3,862	32% above
47	Connecticut	$3,874	33% above
48	Massachusetts	$3,894	33% above
49	Maryland	$4,181	43% above

Source: Experian, “Car Insurance Average Costs by State,” published September 9, 2026 (data for the 12 months to August 2026; excludes Alaska and Hawaii). Linked states have their own guide on this site.

What a state average can't tell you

A state average blends every driver, car and ZIP code in the state. Within a single state, premiums in a dense city can be far higher than in a small town an hour away, and your age, driving record, credit (where it's allowed), car and chosen cover will move your price more than the state line does. A driver with a recent at-fault accident in a cheap state can easily pay more than a clean-record driver in an expensive one.

Minimum-liability policies cost far less than the full-coverage figures above, but they pay nothing towards your own car and leave you exposed to claims above the limits. See cheap full coverage auto insurance for how to keep full cover affordable.

If you're moving, get quotes for the new address before the move. Most insurers need to update your policy once you change your address, and some can't write policies in every state. The only reliable figure is a quote for your own ZIP code. Start with the box below, then compare the offers side by side using the steps in finding the cheapest car insurance rates.