Cheapest Car Insurance by State 2026
Where you live is the single biggest factor in your car insurance rate. Here are average monthly premiums by state and the cheapest insurer in each, plus actionable tips to reduce your rate regardless of where you live.
| State | Avg Monthly Premium | Cheapest Insurer | Cheapest Rate | Context |
|---|---|---|---|---|
| California | $195 | Crest Auto Assurance | $162/mo | High due to population density and litigation rates |
| Texas | $148 | Pinnacle Auto Insurance | $118/mo | Rates vary widely across urban and rural areas |
| Florida | $215 | Shield Direct Insurance | $178/mo | Among the highest nationally due to weather and fraud |
| New York | $202 | Valor Insurance Co. | $168/mo | No-fault state increases base rates significantly |
| Michigan | $248 | Liberty Road Insurance | $195/mo | Historically most expensive state for auto insurance |
| Ohio | $92 | Pinnacle Auto Insurance | $76/mo | One of the most affordable states |
| Illinois | $115 | Apex Coverage Group | $94/mo | Chicago drives rates up significantly vs rural areas |
| Pennsylvania | $128 | Shield Direct Insurance | $102/mo | Choice no-fault system affects premium levels |
| Georgia | $145 | Valor Insurance Co. | $118/mo | Significant urban-rural rate variation |
| North Carolina | $98 | Pinnacle Auto Insurance | $82/mo | State-regulated rates make it affordable overall |
| Arizona | $134 | Crest Auto Assurance | $108/mo | High heat causes more comprehensive claims |
| Colorado | $155 | Shield Direct Insurance | $126/mo | Rising rates due to hail damage claims |
6 Ways to Lower Your Rate
Shop every 12 months
Insurers regularly adjust pricing models. Rates that were competitive a year ago may no longer be. Getting three quotes annually takes under 30 minutes and commonly reveals savings of $200 to $800 per year.
Bundle home and auto
Bundling home or renters insurance with your auto policy typically saves 10 to 25 percent on both policies. The discount alone often covers the renters insurance premium entirely.
Try a telematics program
Usage-based insurance programs track your driving via app or device. Safe drivers typically save 10 to 30 percent. Most programs only charge more if your driving is poor, so there is limited downside if you drive cautiously.
Increase your deductible
Raising your collision deductible from $500 to $1,000 typically reduces your premium by 10 to 15 percent. Only do this if you have sufficient savings to cover the higher deductible if needed.
Take a defensive driving course
Completing an approved defensive driving course earns a discount of 5 to 10 percent at most insurers and takes 4 to 6 hours online. Some states also remove a minor violation point from your record.
Maintain good credit
In most states, insurers use credit-based insurance scores to set rates. Drivers with excellent credit pay on average 40 percent less than drivers with poor credit. Improving your credit score is one of the most effective long-term strategies for lower premiums.
Premiums shown are estimates for a 35-year-old driver with a clean record, good credit, and full coverage. Your actual rate depends on your specific profile. Always get direct quotes from multiple insurers. Updated 27 March 2026.