Cheaper Insurance Companies
In the United States, car insurance is mandatory in all states. The minimum amount of coverage required varies by state, but it’s typically liability-only (that is, it only covers damage to other cars and people).
If you have an accident without enough coverage, your insurance company will pay out the limits of your policy, plus some percentage of any medical bills or property damage. If you don’t have enough coverage at all — say, because you were driving too fast and couldn’t afford full coverage — then you’re on the hook for everything yourself.
We looked at how much the cheapest car insurance policies would cost in every state if you bought them from a major carrier like State Farm or Geico. We also included a few smaller carriers that specialize in cheap car insurance and might be able to offer even lower prices than what we found among the big guns.
The results show that car insurance costs vary widely across the country: In New York City, where there are many more accidents and injuries than in most places, liability-only auto insurance costs $2,200 per year on average. Meanwhile, in rural South Dakota, where there are fewer accidents than average throughout the year (but more during winter months), liability-only