5 Cheapest Car Insurance in the United States (2025): Top Companies & States for Affordable Coverage

Find Cheapest States for Car Insurance (2025)

According to recent studies2, these states offer the lowest average annual premiums:

Why these states are cheaper:

• Lower population density
• Fewer accident claims
• Competitive insurance markets
• Milder weather conditions

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How to Find the Cheapest Car Insurance for You

1. Compare Multiple Quotes

Use tools like The Zebra, Policygenius, or Bankrate to compare rates from top insurers in your ZIP code.

2. Choose the Right Coverage

Opt for state minimum liability coverage if your car is older and paid off. For newer vehicles, full coverage may be necessary.

3. Use Discounts

Look for:

• Good student discounts
• Safe driver programs
• Bundling home and auto policies
• Telematics-based savings

4. Maintain a Clean Driving Record

Avoid accidents, speeding tickets, and lapses in coverage to keep your rates low.

5. Consider Regional Carriers

Local insurers like Farm Bureau, MAPFRE, and Westfield often offer lower rates than national brands.

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Cheapest Car Insurance in the United States: Frequently Asked Questions (FAQ) 

Q1: What is the cheapest car insurance company in the U.S.?

Ans: State Farm and GEICO consistently offer the lowest rates for full and minimum coverage. USAA is the cheapest for military families.

Q2: Which state has the lowest car insurance rates?

Ans: Maine has the cheapest average annual premium at $1,175, followed by New Hampshire and Vermont.

Q3: Does cheap car insurance mean poor coverage?

Ans: Not necessarily. Many affordable policies offer solid protection, but always review coverage limits and exclusions before purchasing.