The 10 Cheapest States for Car Insurance in 2025
2026-03-15 · 5 min read · Rankings
Car Insurance Costs Vary Dramatically by State
Where you live is one of the biggest factors in your car insurance premium. The cheapest states can cost less than half of the most expensive ones. Our analysis of NAIC & State DOI data reveals the top 10 most affordable states.
Why Some States Are Cheaper
Several factors contribute to lower insurance costs:
- Lower population density — fewer drivers means fewer accidents
- At-fault system — states without mandatory PIP tend to be cheaper
- Low uninsured rates — states with high compliance have lower rates for everyone
- Fewer weather-related claims — less severe weather means fewer comprehensive claims
- Lower medical costs — states with lower healthcare costs have lower injury claim payouts
The Takeaway
While you may not move just for cheaper insurance, understanding why rates vary helps you find the best deal in your current state. Use our state comparison tool to see how your state stacks up, and check our company comparison page for the best rates from major insurers.
The CarInsurancePeek editorial team aggregates and verifies car insurance rate data from NAIC & State DOI. Every statistic is cross-referenced against official state DOI filings before publication, with quarterly re-verification cycles.
Read our full methodology or contact us with corrections.