Car insurance costs can vary significantly across the United States, influenced by factors such as population density, traffic congestion, and state regulations. In 2025, certain states stand out for their affordability in auto insurance premiums. Here’s a look at the top 10 states where drivers pay the least for car insurance:
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Maine
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Average Annual Premium: $1,175
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Average Monthly Premium: $98
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Maine’s low population density and minimal traffic contribute to its position as the state with the cheapest car insurance.
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New Hampshire
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Average Annual Premium: $1,265
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Average Monthly Premium: $105
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Known for its rural landscape and low accident rates, New Hampshire offers affordable auto insurance rates.
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Vermont
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Average Annual Premium: $1,319
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Average Monthly Premium: $110
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Vermont’s low traffic volume and fewer uninsured drivers help keep insurance premiums low.
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Ohio
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Average Annual Premium: $1,417
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Average Monthly Premium: $118
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Ohio benefits from a competitive insurance market and a lower incidence of accidents.
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Idaho
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Average Annual Premium: $1,428
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Average Monthly Premium: $119
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Idaho’s sparse population and low crime rates contribute to its affordable car insurance costs.
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Virginia
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Average Annual Premium: $1,469
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Average Monthly Premium: $122
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Virginia maintains low insurance rates due to its balanced traffic conditions and low accident frequency.
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Indiana
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Average Annual Premium: $1,515
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Average Monthly Premium: $126
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Indiana’s steady economy and low population density help keep insurance premiums reasonable.
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Hawaii
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Average Annual Premium: $1,517
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Average Monthly Premium: $126
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Despite its popularity as a tourist destination, Hawaii’s low accident rates contribute to affordable insurance costs.
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Illinois
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Average Annual Premium: $1,532
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Average Monthly Premium: $128
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Illinois benefits from a competitive insurance market and a diverse range of insurers.
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Washington
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Average Annual Premium: $1,608
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Average Monthly Premium: $134
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Washington’s moderate traffic conditions and low accident rates help maintain affordable insurance premiums.
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Factors Influencing Low Car Insurance Premiums:
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Population Density: States with fewer residents often experience fewer accidents, leading to lower insurance costs.
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Traffic Congestion: Less congested roads reduce the likelihood of collisions, impacting insurance rates.
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State Regulations: States with stringent regulations on insurance practices can help maintain competitive pricing.
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Accident Rates: Lower incidences of accidents contribute to reduced claims, influencing premium amounts.
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Uninsured Drivers: States with fewer uninsured motorists typically have lower premiums, as insurers face fewer risks.
Conclusion:
Choosing to live in a state with lower car insurance premiums can lead to significant savings. However, it’s essential to consider all factors, including coverage options and personal driving habits, when selecting an insurance policy. Always compare quotes from multiple providers to ensure you’re getting the best rate for your needs.