Which State Has the Cheapest Car Insurance?

In a Nutshell: Maine is the cheapest state for car insurance in 2026, with an average full coverage premium of $1,210/year ($101/month). North Dakota ($1,260), Idaho ($1,270), New Hampshire ($1,280), and South Dakota ($1,290) round out the top 5. These states share common traits: low population density, fewer severe weather events, lower medical costs, and less litigation.

Top 10 Cheapest States (Full Coverage, 2026)

Rank	State	Average Annual Premium	Below National Average	Key Factors
1	Maine	$1,210	-41%	Rural population, low claims, tort system
2	North Dakota	$1,260	-39%	Very low density, low theft, safe roads
3	Idaho	$1,270	-38%	Rural, low crime, conservative legal climate
4	New Hampshire	$1,280	-38%	No mandatory insurance, tort system
5	South Dakota	$1,290	-37%	Low density, low crime, low medical costs
6	Vermont	$1,350	-34%	Rural, safe roads, low population
7	West Virginia	$1,310	-36%	Rural, low traffic density
8	Wisconsin	$1,540	-25%	Tort state, low litigation, good roads
9	Ohio	$1,410	-31%	Competitive market, tort system
10	Iowa	$1,480	-28%	Low population density, low crime

Why Maine Is #1 (Cheapest)

Factor	Maine	National Average	Impact
Population density	44 people/sq mi	94 people/sq mi	2× lower density = fewer accidents
Uninsured driver rate	6.5%	12.6%	Half the national rate
Severe weather claims	Low	Varies	Few hurricanes, less hail
Medical costs	Below avg	Average	Lower Bodily Injury claims payouts
Urban population	39%	83%	Very rural state
Fraud index	Low	Moderate	Relatively few fraudulent claims
Tort system	✅ (no-fault for PIP only)	Mixed	Lower litigation rates

Maine's unique combination of rural geography, low crime, low uninsured rates, and modest medical costs creates the perfect environment for cheap car insurance.

What Makes These States Cheap?

Cost Driver	ME	ND	ID	NH	SD
Rural population	✅	✅	✅	✅	✅
Low uninsured rate	✅	✅	✅	✅	✅
Low weather risk	✅	⚠️	✅	✅	⚠️ (hail)
Tort system	✅	✅	✅	✅	✅
Low litigation	✅	✅	✅	✅	✅
Low theft rate	✅	✅	✅	✅	✅

Cheapest States vs. Most Expensive

Metric	Cheapest (Maine)	Most Expensive (Florida)	Difference
Full cov annual	$1,210	$3,320	$2,110
Full cov monthly	$101	$277	$176
Min cov annual	$380	$1,500	$1,120
Uninsured rate	6.5%	20.4%	3× lower
Pop density (per sq mi)	44	415	9× lower

Cities With the Cheapest Insurance (Within These States)

City	State	Avg Annual Premium	State Avg
Presque Isle	ME	$1,100	$1,210
Williston	ND	$1,180	$1,260
Moscow	ID	$1,200	$1,270
Berlin	NH	$1,220	$1,280
Rapid City	SD	$1,240	$1,290
Burlington	VT	$1,280	$1,350

Why You Should Care About State Rankings

• If you live in a cheap state: Congratulations — but don't get complacent. Shop around to keep rates low.
• If you live in an expensive state: Every strategy matters more — shop aggressively, maximize discounts, and consider coverage adjustments.
• If you're moving: Your insurance cost could change by $1,000–$2,100/year depending on where you relocate.

Key Takeaways

• Maine is cheapest at $1,210/year — 41% below the national average
• Top 5 cheapest: Maine, North Dakota, Idaho, New Hampshire, South Dakota
• Cheap states share: rural population, low uninsured rates, tort systems, low litigation, low crime
• The gap between cheapest (Maine, $1,210) and most expensive (Florida, $3,320) is $2,110/year
• Moving from an expensive state to a cheap state can save $1,000–$2,100+/year
• Even within cheap states, rural ZIP codes cost less than cities

Last updated: July 2026

Disclaimer: This article provides estimated average car insurance costs by state for 2026. Actual premiums vary based on individual factors including driving history, credit score, vehicle type, and coverage selections. Always obtain personalized quotes for accurate pricing.