Which US state has the cheapest auto insurance premiums?
Auto insurance is required by all states in the United States, although specific coverage requirements can vary widely by location. Coverage costs can also vary widely from location to location.
So which state in the United States has the cheapest insurance premiums of any place in the country?
This state has the cheapest average auto insurance premiums
According to data from The Ascent, the state with the cheapest auto insurance premiums in the country is Hawaii. And the state in the continental United States with the cheapest average premiums is Ohio.
In Hawaii, the average auto insurance premium is just $ 1,096. And in Ohio, the average auto insurance premium is $ 1,567. In these two states, premiums are well below the national average premium of $ 2,646. And they’re only a small fraction of the average annual premium of $ 4,894, which is the average in the nation’s most expensive state for auto insurance – Michigan.
One of the main reasons why insurance in Ohio is so inexpensive is that there is a lot of competition in the local insurance market. In fact, there are over 250 different insurance companies that drivers can choose to purchase auto insurance from. With so many different auto insurance companies competing for business, prices will inherently be lower than in other markets where there may be fewer options for consumers.
And like Hawaii, anti-discrimination laws prohibit insurers from considering factors such as credit rating or gender. This helps keep the average premiums down for everyone, as insurers may not be able to charge very high premiums to more risky motorists.
Drivers should always shop around to save on insurance
While it may be cheaper to purchase insurance in Hawaii or Ohio than in many other parts of the country, that doesn’t mean all motorists can count on cheap premiums when insuring their vehicles.
Drivers should always do their due diligence and make sure that they get auto insurance quotes from multiple insurance providers in order to get the best rates for their coverage. This is easy for motorists to do online, and drivers should get quotes at least once a year as available insurance options may change and another carrier may become cheaper over time.
Motorists should also be sure to ask their insurer for any insurance discounts that may be available. It is often possible to further reduce premiums by taking measures such as:
By taking the time to regularly compare insurance options and consider the possibilities for saving money, drivers in these affordable states have the potential to pay very low insurance premiums for essential coverage. Policyholders just need to remember not to compromise coverage or quality just for low prices. But since insurance is so cheap, drivers shouldn’t have to do it to get a good deal on their auto insurance in Ohio or Hawaii.