Top 10 States with the Cheapest Car Insurance in 2025
If you’re looking to save money on auto insurance in 2025, where you live can make a huge difference. Insurance rates vary widely across the United States, and certain states offer significantly lower premiums due to factors like fewer accidents, lower population density, and friendly state regulations.
In this article, we’ll break down the top 10 states with the cheapest car insurance in 2025, explore what makes their rates so affordable, and how you can use this information to your advantage—even if you don’t live in one of these states.
1. Idaho
Why it’s the cheapest:
- Low accident rates
- Fewer theft and vandalism claims
- Minimal urban congestion
Idaho ranks #1 in 2025 for the cheapest car insurance. Drivers here pay an average of $1,470 per year, significantly below the national average.
2. Vermont
Why it’s cheap:
- Rural layout with low population
- Safe drivers with minimal DUI statistics
In Vermont, the average annual premium is around $1,430, thanks to consistently low claims and a stable insurance market.
3. Maine
Why it’s affordable:
- One of the lowest traffic volumes in the country
- Low rates of uninsured drivers
The average Mainer pays just $1,431 per year, making Maine a consistent top performer in affordable auto insurance.
4. Ohio
What keeps costs down:
- Highly competitive insurance market
- Affordable healthcare and repair costs
Ohio drivers enjoy annual premiums around $1,450, thanks to insurers fighting to offer better rates.
5. North Carolina
Why it’s on the list:
- State-regulated pricing structure
- Fewer large-scale weather events
With rates around $1,470 per year, North Carolina remains a solid choice for budget-conscious drivers.
6. New Hampshire
What helps:
- No mandatory auto insurance laws (though financial responsibility is required)
- Low population and accident rates
Average premiums hover near $1,480, putting it comfortably in the top 10.
7. Indiana
What keeps it low:
- Low litigation rates
- Minimal urban traffic congestion
Indiana’s average rate is around $1,520, largely due to fewer lawsuits and lower repair costs.
8. Washington
Why it makes the cut:
- State investment in safe road infrastructure
- Stable weather patterns
At around $1,550 annually, Washington’s premiums remain well below the national average.
9. Hawaii
What’s unique here:
- No-fault insurance system
- Strong regulations favoring drivers
Hawaiians pay about $1,570 per year, aided by their state’s proactive insurance laws.
10. Iowa
Factors include:
- Low crash statistics
- High insurer competition
With an average of $1,590 annually, Iowa wraps up our list of top 10 states with the cheapest car insurance in 2025.
Why Are These States Cheaper for Car Insurance?
Several shared characteristics contribute to low premiums:
- Rural landscapes: Less traffic means fewer accidents.
- Strict driving laws: Helps keep roads safe and claim rates down.
- Lower crime rates: Less theft and vandalism reduce costs.
- Regulatory environment: Some states impose rules that prevent drastic price hikes.
Even if you don’t live in one of these states, understanding what makes car insurance cheaper can help you shop smarter.
How to Save If You’re Not in One of the Top 10 States
If you’re not lucky enough to live in one of the top 10 states with the cheapest car insurance in 2025, here’s what you can do:
- Shop around: Don’t settle for the first quote—compare at least 3 providers.
- Bundle your insurance: Combine auto with home or renters.
- Increase your deductible: Higher deductibles mean lower premiums.
- Take defensive driving courses: Many insurers offer discounts for this.
- Use telematics programs: Let your driving habits work in your favor.
Summary Table: Cheapest Car Insurance States in 2025
| Rank | State | Average Annual Premium |
|---|---|---|
| 1 | Idaho | $1,470 |
| 2 | Vermont | $1,430 |
| 3 | Maine | $1,431 |
| 4 | Ohio | $1,450 |
| 5 | North Carolina | $1,470 |
| 6 | New Hampshire | $1,480 |
| 7 | Indiana | $1,520 |
| 8 | Washington | $1,550 |
| 9 | Hawaii | $1,570 |
| 10 | Iowa | $1,590 |
Final Thoughts
Living in one of the top 10 states with the cheapest car insurance in 2025 is a great advantage. But no matter where you are, you can still save money with the right strategy.
Shop wisely, take advantage of discounts, and focus on safe driving to unlock the best rates possible.
