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5 Cheapest States for Car Insurance in 2025 (And Why Rates Are Low) Are you looking for affordable car insurance rates in the US? Your location plays a huge role in determining your premium. Some states have significantly lower insurance rates due to factors like lower accident rates, fewer uninsured drivers, and fewer natural disasters. In this article, we’ll break down the 5 cheapest states for car insurance in 2025 and explore why their rates are lower than the national average. 1. Iowa Why it’s affordable: Low accident rates : Iowa consistently ranks as one of the safest states for drivers, lowering the need for extensive coverage. Few uninsured drivers : Fewer drivers without insurance keep premiums down for everyone. Low healthcare costs : Injuries from accidents are generally less expensive to treat, which lowers insurance rates. Average Annual Premium : $800–$900 2. Maine Why it’s affordable: Small population density : Less traffic and fewer acc...
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