States With Lowest Auto Insurance Rates - If you own a car, then your insurance bills are no doubt part of your budget. Rates can vary by several hundred dollars depending on where you live, and it turns out that the difference between full and limited coverage makes a big difference, too.
We got our data from ValuePenguin, a website that compares costs and financial products. We've compiled the average full and minimum coverage for each state, from highest to lowest in an ordered pie chart. Minimum coverage is defined for these purposes as the minimum amount of coverage a driver can carry and still legally operate a vehicle. Full coverage also means accident coverage and full coverage above the minimum, as well as excess coverage. Read more about ValuePenguin's unique approach here. Suffice it to say, this method allows you to easily see a comparison of car insurance rates across the country.
States With Lowest Auto Insurance Rates
Our observations clearly show how there are significant price differences between minimum and full coverage. The average difference is $1,453 per year. The state with the largest gap is Michigan ($3,441), followed by Rhode Island ($2,258) and Louisiana ($2,196). In fact, the lowest difference between full and minimum coverage can be found in Maine, where drivers can still save $779 per year with the cheapest policies. This means you can make some significant savings on your monthly budget by switching to the cheapest policy available, especially if your car is currently out of commission due to lockouts and impoundments.
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There's one big reason auto insurance rates are so high in Michigan. The state specifically requires all drivers to purchase unlimited personal injury insurance. This was prohibitively expensive for insurance companies, so they passed the cost on to consumers, resulting in both the highest rates in the country ($8,723) and the lowest ($5,282). Last year, Michigan passed a law that changes the requirements starting in the spring of 2020, meaning that Michigan residents will soon see significantly lower rates if they choose lower insurance limits. And all this just as the disaster is forcing millions of people out of work. Timing is everything.
Speaking of disaster, many auto insurance companies are seeing huge profits as Americans stay home and off the roads. Less driving means fewer accidents and car insurance claims. A number of companies pass that savings back to policyholders through refunds or lower rates.
If you want to save more money, you may be in the market for a new auto insurance company. Check out our cost guide to get started.
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If you want to use our images in books, magazines, reports, educational materials, etc., we can issue a permission document that gives you non-exclusive rights to reproduce, store, publish and distribute. According to the US Census Bureau, approximately 108 million American households own at least one vehicle, with 7.5 million households owning four or more vehicles. But if you're a car owner considering moving to a new state, you may be surprised when it comes to your auto insurance bill.
Since each state sets its own insurance rates, owning a car in some states is more expensive than others. A recent report titled Zebra State Car Insurance 2019 provides a breakdown of average car insurance premiums in each state. From September to December 2018, Zebra analyzed more than 61 million auto insurance quotes nationwide using information from insurance rating centers and public rate statements. Zebra's results are shown in our latest infographic below.
According to Zebra, car insurance rates are based on five main factors: where you live, what you drive, how you drive, your insurance options, and your demographics (such as age and gender). To ensure consistency when comparing rates from state to state, Zebra used the same demographic and vehicle profile for a hypothetical insurance customer (a 30-year-old single male with a 2014 Honda Accord EX and a good driving history).
Zebra attributes a number of unique factors to the differences in insurance rates across states. States with densely populated cities tend to have higher rates because of the risk associated with traffic congestion, crime and the high likelihood of uninsured drivers. Therefore, northeastern states such as New York, New Jersey, and Rhode Island have correspondingly high rates. In addition, Zebra claims that the risk associated with extreme weather conditions or natural disasters lead to higher levels. This may be due to higher insurance rates in hurricane-prone Gulf Coast states such as Louisiana and Florida or tornado-prone states such as Oklahoma and Texas.
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Since driving is the most common form of transportation, understanding how car insurance affects you is essential. Learn more about different types of insurance using our price guides.
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If you want to use our images in books, magazines, reports, educational materials, etc., we can issue a permission document that gives you non-exclusive rights to reproduce, store, publish and distribute. To find the cheapest auto insurance in Tennessee, our editorial team has collected quotes from some of the top auto insurance companies in every zip code in the state.
The minimum coverage covers the TN state minimum requirements of $25,000 in personal injury liability coverage and $50,000 in accident coverage, plus $15,000 in property damage coverage. Comprehensive insurance coverage includes accident and comprehensive coverage, plus higher liability limits than state minimums.
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Additionally, we ranked the best auto insurance companies in Tennessee based on affordability for different drivers, convenience, customer service reviews and coverage availability.
State Farm has the cheapest auto insurance with the lowest coverage in Tennessee. At $22 a month, a policy with State Park's minimum coverage costs 40% less than the state average.
The average cost of auto insurance in Tennessee is $37 per month, or $446 per year, for minimum liability.
Minimum liability policies are the cheapest auto insurance in Tennessee because they provide the lowest level of coverage you can legally have in the state. Cheap rates may make car insurance with minimum coverage seem like the best option, but if you get into an accident, you could end up paying more in the long run.
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A minimum insurance policy covers injuries to the other driver and property damage. It does not cover damage to your vehicle or injuries to you and your passengers.
That is why most drivers should get full auto insurance coverage instead of the minimum insurance policy, especially if they are older or have a new car.
State Pharmacy offers Tennessee drivers the cheapest comprehensive insurance coverage. At $64 per month, State Park's offering is 44% cheaper than the average and $39 per month less than the second cheapest company, Geico.
Full auto insurance costs an average of $1,352 a year in Tennessee -- $906 more than a minimum insurance policy.
Compare 2023 Car Insurance Rates Side By Side
Tennessee drivers who are veterans or military family members can get affordable car insurance from USAA. USAA's full coverage policy costs $73 per month - 35% cheaper than the national average.
Comprehensive coverage includes comprehensive coverage and collision coverage in addition to liability coverage. Comprehensive insurance pays for damage to your car after accidents beyond your control, such as theft and weather conditions, while collision insurance pays for damage to your car after an at-fault accident. If you have a car loan or lease, the lender will usually require you to have full insurance.
State Farm is the cheapest auto insurance option for Tennessee drivers with a speeding ticket, at-fault accident or DUI driving record.
Car insurance costs are always more expensive for drivers who don't have a clean record. Insurance companies see accidents like at-fault accidents, traffic violations, and DUIs as signs of a dangerous driver, so these incidents often result in rate increases.
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State Pharmacy has the best deal for Tennessee drivers with a recent speeding ticket for $69 a month for full coverage. That's $61 a month cheaper than the state average of $130 a month. Tennessee drivers can expect to pay 15% more for auto insurance after a speeding ticket.
Tennessee drivers with an at-fault accident on their record can get affordable auto insurance from State Farm. While the average rate for at-fault drivers is $157 a month for full coverage, State Pharmacy rates are 53% lower - just $75 a month.
The average rate in Tennessee is increased by 40% after a wrong-way accident. However, each insurance company has a different approach to at-fault accidents and your rate may also depend on whether or not you have an accident waiver.
For example, the Farm Bureau cannot raise rates at all: The company pays the same rate of $137 per month before and after a crash. In contrast, Geico raised it 82% after the accident, from $103 a month to $188.
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The unique price differences between insurance companies is why you should shop around to get the best rates.
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