Top State for Cheap Car Insurance

The cost of insurance continues to rise, but is more expensive in certain states. When you want cheap car insurance, consider the state that has the lowest average premiums in the country. If you live in Maine and own a car, the average amount you will pay for annual premiums is $934. Several factors contribute to these low rates.

Insurance Requirements

Maine residents are required to purchase liability (50/100/25), medical payments, and uninsured motorists coverage to meet financial responsibility laws. There are no other options in this state to prove financial responsibility. Drivers who cannot afford insurance can apply to the state for the Maine Automobile Insurance Plan which is assigned risk coverage. All insurers licensed in the state are required to participate in the Plan. In Maine, you can provide proof of insurance with:

  • Insurance card
  • Letter from your insurer
  • Declaration page from your policy
  • Official summary of your policy

Rural Driving

Approximately 1.3 million residents live in Maine. Because the state is largely rural, insurance rates are automatically lower. Whenever there are fewer cars on the road, the chances of an accident occurring drastically decrease. Put simply, less traffic means fewer accidents. It is easier to find cheap car insurance in this type of location.

Graduated Licensing Program

Teen drivers are required to complete a 3-step drivers licensing process that include driving restrictions for young drivers up to the age of 20. The graduated program consists of the learner's permit, an intermediate license, and the State of Maine driver license. Each step specifies:

» Length of time between getting learner's permit and taking the driving test (up to six months)

» Number of driving hours (30 hours of day driving and 5 hours of night driving)

» Who is banned from using cell phones while driving (all drivers under the age of 18 and all drivers with learner's permit)

» Number and age of passengers (only immediate family members unless passenger has driver's license)

» When driving is prohibited (between midnight and 5 a.m. for all drivers under 18)

Because of these strict teen driving requirements, Maine teens are involved in fewer accidents which make it possible for all drivers in the state to get cheap car insurance. You too can use these guidelines to find cheap car insurance. All you need to do is maintain legally required insurance, live and work in a rural area, enroll in a driving class, and avoid behaviors that lead to distracted driving.