car insurance

The 10 States With The Lowest Car Insurance Rates

You’ll want to head south if you’re looking for the cheapest car insurance rates. According to a recent study, ten states have the lowest car insurance rates in the country. The cheapest car insurance is found in Florida, with Louisiana and Oklahoma not far behind. So what makes these states so affordable? Many simply start with cheap auto insurance provider Freeway Insurance. And how can you make sure your premiums are as low as possible?

What Factors Affect Rates Most

All three of these states have relatively low minimum insurance requirements. In Florida, for example, the minimum coverage is just $10,000 for personal injury protection and $10,000 for property damage liability. That’s much lower than the national average of $25,000/$50,000. And while you might think that would make premiums higher, it has the opposite effect.

The reason is that insurers base their rates on the assumption that you’ll need to use your insurance. The more coverage you have, the more likely you will make a claim. So when you have low minimums, insurers can offer lower rates.

These states also have many other factors working in their favor. They tend to have lower populations, meaning fewer drivers are on the road. They also have less traffic, which means fewer accidents. And when fewer accidents occur, there are fewer claims to pay out.

What are the 10 Lowest States for Insurance Rates

  1. Florida – Minimum Requirements: $10,000 for personal injury protection and $10,000 for property damage liability
  2. Louisiana – Minimum Requirements: Louisiana – Minimum Requirements: $15,000 for bodily injury per person/$30,000 for bodily injury per accident/$25,000 for property damage
  3. Oklahoma – Minimum Requirements: $25,000 for bodily injury per person/$50,000 for bodily injury per accident/$25,000 for property damage
  4. Mississippi – Minimum Requirements: $25,000 for bodily injury per person/$50,000 for bodily injury per accident/$25,000 for property damage
  5. South Carolina – Minimum Requirements: $25,000 for bodily injury per person/$50,000 for bodily injury per accident/$25,000 for property damage
  6. Alabama – Minimum Requirements: $25,000 for bodily injury per person/$50,000 for bodily injury per accident/$25,000 for property damage
  7. Tennessee – Minimum Requirements: $50,000 for bodily injury per person/$100,000 for bodily injury per accident/$25,000 for property damage
  8. Georgia – Minimum Requirements: $25,000 for bodily injury per person/$50,000 for bodily injury per accident/$25,000 for property damage
  9. Texas – Minimum Requirements: $30,000 for bodily injury per person/$60,000 for bodily injury per accident/$25,000 for property damage
  10. Arizona – Minimum Requirements: $15,000 for bodily injury per person/$30,000 for bodily injury per accident/$10,000 for property damage

3 States with the Highest Car Insurance Rates

  1. Michigan – Minimum Requirements: $20,000 for bodily injury per person/$40,000 for bodily injury per accident/$10,000 for property damage
  2. Montana – Minimum Requirements: $25,000 for bodily injury per person/$50,000 for bodily injury per accident/$20,000 for property damage
  3. Wyoming – Minimum Requirements: $25,000 for bodily injury per person/$50,000 for bodily injury per accident/$20,000 for property damage

As you can see, the states with the lowest car insurance rates are primarily located in the South. This is because these states have lower populations and less traffic. If you’re looking to save on your car insurance, these are the states you should be targeting. But even if you don’t live in one of these states, there are still plenty of ways to reduce your premium. Here are a few tips:

How to Save More

If you’re looking to save on your car insurance, these are the states you should be targeting. But even if you don’t live in one of these states, there are still plenty of ways to reduce your premium. Here are a few tips:

Well Maintained Car

Cars that are kept in good mechanical shape are significantly less likely to break down and can prevent costly insurance claims. For the basics, you can usually find coupons for local auto parts stores, like AutoZone. Youtube offers a lot of tutorials to learn how to DIY routine maintenance tasks.

Raise your deductible

Your deductible is the amount you must pay before your insurance kicks in. The higher your deductible, the lower your premium will be.

Shop around

Insurance rates can vary widely from one company to the next. Make sure you’re getting the best deal by shopping around and comparing quotes.

Take Advantage of Discounts

You may be eligible for several discounts, such as a good driver discount or a discount for having multiple policies with the same company. Also, ask about discounts for good driving habits, military service, being a first responder, or membership in auto clubs such as AARP and AAA.

Drive Safely

Your driving record is one of the most significant factors in determining your premium. If you have a clean record, you’ll likely pay less than someone with a history of accidents or traffic violations.

Following these tips can help you get the cheapest car insurance rates possible. But remember, the best way to save on your premium is to be a safe driver. Accidents and traffic violations will always cause your rates to go up. So drive carefully and follow the rules of the road, and you’ll be sure to get the best rate possible.

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About the Author

nicole king

Nicole King

Nicole is a shopaholic with decades of experience. With a passion for writing and an undeniable ability to grab the best deals, Nicole enjoys helping others feed their inner-shopaholic too. Her work has been featured on Business Insider, Lifehacker, The Motley Fool, USA Today, and Moneyish.