States with the Lowest Auto Insurance premiums
Do you feel like your auto insurance rates have gotten out of hand? Be thankful if you don’t live in Michigan, Oklahoma or Louisiana. Residents there pay more than $2,000/per year on average to insure each vehicle. Iowans may also complain about raising rates, but should take some comfort in knowing they pay the lowest auto insurance rates in the nation! According to the November 2017 newsletter for Independent Insurance agents of Iowa, Iowans pay on average $1,125/year for auto insurance. Premiums vary by zip code and are based on the loss (claims) experience of insurance companies in each zip code. Therefore rates can vary widely even within a state. For example people in Detroit zip codes will pay a lot more than those in Marquette, MI.
Iowa’s lack of large urban areas helps reduce traffic congestion and accidents. However lower crime rates (theft and vandalism) as well as relatively fewer weather-related losses also work in the state’s favor. On the other hand, Iowa was the fourth highest state for deer-vehicle collisions last year according to State Farm. Of course the car you drive, driving records, credit history and age and experience of the driver(s) are important insurance rating factors too.
Iowa also is the 12th best state for the lowest percentage of uninsured drivers at just 8.7%*. This is despite the fact that Iowa doesn’t have a compulsory insurance law. Iowa’s Financial and Safety Responsibility act requires that drivers have the financial means to cover injury or property damage to others. Financial responsibility can be satisfied either from one’s personal wealth or with auto liability insurance.
The top 10 states with the lowest average auto insurance premiums are ranked below, with Iowa being the lowest:
- North Carolina
- New Hampshire
- North Dakota
* Percentage of uninsured drivers, as measured by the ratio of uninsured motorists claims to bodily injury claim frequencies. Source: Insurance Research Council, 2015.
Get a quote from a Cedar Rapids auto insurance agency.