Auto & Driving
Cheapest States for Car Insurance
Sourced from NerdWallet's August 2026 state-by-state rate data.
The same full-coverage policy can cost several times less depending on which state you live in. Here are the 5 cheapest, and why.
Data sourced from NerdWallet
The 5 cheapest states for full-coverage car insurance
- Wyoming: $1,148/year
- Vermont: $1,464/year
- New Hampshire: $1,575/year
- Alaska: $1,648/year
- Maine: $1,701/year
All 5 sit well below the $2,356 national average, according to NerdWallet's August 2026 rate data. Wyoming, the single cheapest state in this data, runs about 51% below that national average.
Why these states are so much cheaper
Several factors compound to push these states below the national average: lower population density means fewer accidents per driver and less traffic congestion, lower litigation frequency and lower typical medical and repair costs keep claim payouts smaller, and lower theft rates reduce comprehensive claims.
Several of the cheapest states also carry comparatively low state-minimum liability requirements, which lowers the baseline every quote is built from.
To check your own state's actual position on this list, and to combine it with your own vehicle type and coverage level, the car insurance cost calculator runs the full state-by-state comparison directly.
Do not assume moving alone gets you the cheap rate
A state average is a useful benchmark, not a personal guarantee. Your own rate still depends heavily on your age, driving record, the specific vehicle you drive, and which insurer and coverage level you choose, a state's low average reflects a blend of many different drivers, not a floor every individual automatically receives.
If you do relocate, you will need to update your registration and either transfer or replace your policy to reflect the new garaging address, insurers reprice the same driver the moment that address changes.
Frequently asked questions
What is the cheapest state for car insurance?
Wyoming, at about $1148/year for full coverage nationally-averaged rates, according to NerdWallet's August 2026 data, about 51% below the $2356 national average.
Why are these states so much cheaper than the national average?
Lower population density, less litigation, lower medical and repair costs, and lower rates of accidents and theft all push these states below the national average. Several of the cheapest states also have relatively low state-minimum coverage requirements, which further reduces the baseline cost.
If I move to a cheap state, will I automatically get the cheap rate?
Not automatically, and not immediately in every case. Your rate still depends on your age, driving record, vehicle, and the specific insurer and coverage level you choose, a state's average is a starting point, not a guaranteed personal rate.
You will also need to re-register your vehicle and get a new policy or transfer your existing one to reflect the new state, insurers price the same driver differently the moment their garaging address changes.
Does a cheap state also mean cheap home insurance?
Not necessarily, the two are priced on almost entirely different risk factors. A state cheap for car insurance due to low population density can still be expensive for home insurance if it carries meaningful wildfire, hail, or severe-storm risk. Check each separately rather than assuming one implies the other.