10 Cheapest States for Car Insurance

Besides the state, many factors can affect how much you pay for insurance. According to Maine's state government, the factors that determine the cheapest car insurance rate include:

• Driving Record: If you have any history of moving violations, including speeding and failure to yield to more serious offenses like driving under the influence to hit and run, these can dramatically increase your insurance premiums. How far back in your records will vary from company to company, but most insurance companies will look between 3 to 7 years.
• Vehicle Garaging: Where your vehicle is garaged is defined by where it will be driven or parked (hence "garaged"). It costs more to garage in certain states than others due to collision rates, crime, vandalism, and the condition of the roads.
• Gender and Age: While not legal in all areas, insurance companies sometimes discriminate based on gender and age. Younger drivers will often pay hundreds or thousands of dollars more per year than older drivers, as will women. The justification for this extra charge is that some statistics have shown female and new drivers to have higher rates of accidents and claims.
• Marital Status: Whether or not you are married will also affect how much you pay for insurance each month. Insurers will often cite statistics that show unmarried policyholders have more claims than married policyholders. Therefore, covering single drivers is more costly.
• Prior Insurance Coverage: Insurers will also examine your previous coverage history. If you have been uninsured for years, failed to renew your policy consistently, or have had your insurance canceled, you may be seen as a liability (and have to pay more each month to retain a policy.)
• Mileage and Use: High mileage or intense usage can increase insurance rates. You will have much higher premiums if you use your vehicle for work or frequently commute hundreds of miles. You can find out a car's mileage with a vehicle history report.
• Make and Model: Luxury makes and models of vehicles can carry higher insurance rates, while more affordable cars cost less per month. You can find this information with a VIN decoder.
• Insurance Claim History: Insurance companies will look at the number of claims you've made in the past, usually within the last 3 to 5 years.
• Credit History: Though the Federal Fair Credit Report requirements lay down guidelines for how Insurance companies can use credit scores, insurers will still consider your credit score when determining your premiums. Excellent and good credit ratings show insurance companies that you are more likely to be responsible than someone who has a fair or poor credit rating.

It may seem drastic, but If you want to keep your auto insurance cheap (and have the option to move), it may be time to relocate. Some states have lower rates because they driver fewer miles on average, have fewer residents, or do not require the same levels of car insurance. Here is a sampling of the cheapest states for auto insurance and what rates you can expect to pay as a driver, according to CNBC.

Cheapest Car Insurance By State:

• Maine: The average annual cost of car insurance in Maine is $876; with an average yearly income of $60,834, the cost of car insurance accounts for 1.44% of a Maine resident's total income.
• Vermont: The average annual cost of car insurance in Vermont is $1,000; with an average yearly income of $67,567, the cost of car insurance accounts for 1.48% of a Vermont resident's total income.
• Idaho: The average annual cost of car insurance in Idaho is $1,065; with an average yearly income of $63,393, the cost of car insurance accounts for 1.68% of an Idaho resident's total income.
• New Hampshire: The average annual cost of car insurance in New Hampshire is $1,182; with an average yearly income of $80,408, the cost of car insurance accounts for 1.47% of a New Hampshire resident's total income.
• Hawaii: The average annual cost of car insurance in Hawaii is $1,206; with an average yearly income of $85,532, the cost of car insurance accounts for 1.41% of a Hawaii resident's total income.
• Wisconsin: The average annual cost of car insurance in Wisconsin is $1,249; with an average yearly income of $66,791, the cost of car insurance accounts for 1.87% of a Wisconsin resident's total income.
• Utah: The average annual cost of car insurance in Utah is $1,449; with an average yearly income of $78,324, the cost of car insurance accounts for 1.85% of a Utah resident's total income.
• Massachusetts: The average annual cost of car insurance in Massachusetts is $1,296; with an average yearly income of $89,310, the cost of car insurance accounts for 1.45% of a Massachusetts resident's total income.
• Washington: The average annual cost of car insurance in Washington is $1,313; with an average yearly income of $82,062, the cost of car insurance accounts for 1.60% of a Washington resident's total income.
• Virginia: The average annual cost of car insurance in Virginia is $1,296; with an average yearly income of $89,379, the cost of car insurance accounts for 1.45% of a Virginia resident's total income.

Car Insurance Rates Vary, but Coverage is Priceless

While states do vary in terms of what rates they charge for car insurance, they all have the same goal: make sure that any damage caused by a car accident is able to be covered financially. If you happen to live in New Hampshire and Maine, which regularly top the "states with the cheapest car insurance" charts, then you may get lucky and pay a little less. However, even if you live in a state with slightly higher rates, having automotive insurance is a priceless commodity that no one should realistically go without.