Cheapest States to be Insured In

Insurance median rates per state vary from one year to another, but some states have a proven track record of offering cheaper auto insurance. According to a study published by The Daily Finance, the three cheapest states to be insured in are Vermont, South Carolina and Maine. This article will show you the average coverage in these states and discuss some of the reasons why they are cheaper than the rest of the country.

In the below figures we will use the example of a 40 year old male driver with no at-fault claims for the previous year, commutes 14 miles to work five days a week and drives occasionally on weekends and vacations. Furthermore, the averages are for a 100/300/50 policy ($100,000 coverage for one injured person but not more than $300,000 and a $50,000 property damage policy).


Vermont seems to be the cheapest state to be insured in. An average driver matching the above profile will spend a little less than $1,000 per year. We can distinguish two main reasons:

- Vermont is a rural state with hardly any traffic congestions. When you live on a ranch or in a village where the next neighbor is two miles away you can hardly be involved in an accident.

- Punishments for traffic infractions are harsher than average. On the third DUI conviction, for instance, your driving permits are revoked. This seems to make drivers more cautious behind the wheel.

South Carolina

The average coverage in South Carolina in the above scenario is of around $1,100. Today's low rates in SC are the result of a sustained effort to make the market more competitive. For the last 15 years, officials have tweaked the laws to allow national players to base their rates on driver risk rather than some government imposed criteria and this has paid up – South Carolina is now the second cheapest state to get insured in.


Car insurance in Maine is usually cheaper than in the rest of the country, but there are a few cities that obviously oppose the statement. The average premium is slightly above $1,120, but if you live in a city like Lewiston you may be billed upwards of $1,400. The rates go in line with the state's economic situation – pulp and paper, which have been the backbone of the economy for the last century, have been hit by recession and there is yet a sustainable replacement to be found.

Keep in mind that these are only the average figures and your actual quote will depend on your driving record and your personal profile. Young drivers, for instance, are always regarded as high risk and will be billed accordingly – in other words, if you are 18 you will have to pay much more than the 40 year old man in this example. Just because you live in any of these states doesn't mean you have hit the jackpot. Use an insurance calculator to get a rough estimate on how much you will have to pay.