10 States With Cheap Auto Insurance

by Erika Torres
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Several factors influence the cost of auto insurance. While some of these factors are within the control of the insured driver, others are beyond the driver’s control. One major factor in calculatingauto insurance cost is the state where the policy is issued.  Using your zip code you can easily find cheap auto insurance quotes online with free services.  Rates vary substantially from one state to the next, and a driver can incur a much higher insurance premium simply by moving across state lines.

Why Some States Cost More Than Others

In general, insurance costs are always calculated based on risk. A driver at high risk of being involved in an accident will have the highest premiums. Some risk factors are applied at a regional level, which is why certain states have higher insurance costs than others. The greatest risk is drivers without insurance as these drivers cannot pay for the damage they cause; this in turn causes insurance companies to lose money paying for these claims. States with a high number of uninsured motorists will tend to have the highest insurance premiums. Additionally, a state’s crime rate will also affect insurance rates in the area, especially if there is a high incidence of vandalism and theft.Other factors that play a role in determining the cost of insurance include the state’s population, the number of drunk driving accidents it has each year and what type of weather the state generally has. Anything that creates an above-average risk of causing vehicular damage will result in increased premiums.

The 10 Cheapest States for Auto Insurance

Although moving to a new state to take advantage of cheap insurance isn’t always a wise decision, it can help to know what areas have the lowest premiums. Here are the top 10 cheapest statesfor auto insurance according to Forbes.
1.) Maine: $889
2.) Iowa: $985
3.) Wisconsin: $987
4.) Idaho: $1,011
5.) North Carolina: $1,022
6.) Vermont: $1,063
7.) Ohio: $1,099
8.) South Carolina: $1,108
9.) New Hampshire: $1,133
10.) Arizona: $1,176

Unsurprisingly, these annual insurance rates are closely tied to the number of uninsured drivers and drunk driving fatalities in each state. Maine, for example, has the lowest percentage of drunk driving fatalities in the country. Vermont has one of the lowest percentages of uninsured motorists in the country.These figures are significant. Uninsured motorists cause the insured driver’s insurance company to lose money on claims, and drunk driving accidents are often much more serious and expensive than other types of collisions. As a rule, states with a low incidence of drunk driving and a high number of insured drivers will always have the cheapest auto insurance.

These average annual premiums listed above were calculated based on a hypothetical 40-year-old male with a good driving record. The actual cost of insurance for a real driver in these stateswill vary depending on the insured’s own driving record, age, gender and other factors. If you are looking to buy cheap auto insurance, it’s a good idea to get a personalized quote that will take all of these factors into account so you can find the best possible deal.

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