Compare Cheapest Car Insurance by State
Finding cheap car insurance can feel like a guessing game — especially when prices vary dramatically based on where you live. What’s considered affordable in Kentucky (KY) may be double the price in Connecticut (CT) or Philadelphia, PA. That’s why comparing rates by state is the smartest way to save money before committing to a policy.
Whether you’re searching for the cheapest car insurance in Louisiana, Tennessee, Arkansas, Connecticut, or looking for quick car insurance quotes in CT or Philadelphia, this guide breaks down real cost differences, top insurers, and proven ways to unlock discounts.
Top Affordable Insurance Companies by Region
Insurance providers rank differently depending on state regulations, demographics, and regional risk levels. However, certain companies consistently offer cheaper-than-average premiums in specific areas.
| State / Region | Cheapest Insurance Providers (Based on 2025 Averages) |
| Kentucky (KY) | State Farm, GEICO, Nationwide |
| Louisiana | Progressive, Direct Auto, USAA (for military) |
| Tennessee | GEICO, Auto-Owners, Farmers |
| Arkansas | State Farm, Shelter Insurance, Safeco |
| Connecticut (CT) | Liberty Mutual, Allstate, Progressive |
| Philadelphia, PA | Erie Insurance, Travelers, Nationwide |
Tip: Don’t rely on a single quote. Insurers price differently based on age, credit score, ZIP code, and driving history — so comparing at least three quotes per state can save you up to $600/year.
Average Monthly Car Insurance Costs in Each State
Insurance rates are affected by local accident statistics, weather risks, insurance fraud, and population density. Here’s what drivers pay on average in 2025:
| State | Minimum Liability | Full Coverage |
| Kentucky (KY) | $78 | $164 |
| Louisiana | $112 | $243 |
| Tennessee | $65 | $142 |
| Arkansas | $70 | $155 |
| Connecticut (CT) | $89 | $178 |
| Philadelphia, PA | $101 | $221 |
Why Louisiana and Philadelphia are More Expensive:
These regions have higher accident rates, uninsured drivers, and claims frequency — pushing premiums up. Meanwhile, Tennessee and Arkansas offer some of the lowest rates in the country.
How to Find Discounts and Bundled Deals?
No matter where you live, there are multiple ways to pay less for car insurance — without lowering your coverage.
1. Safe Driver & Telematics Discounts
Most companies now offer usage-based programs that monitor your driving habits. If you maintain smooth acceleration, safe braking, and low mileage, you can save 10–30% on premiums.
2. Bundle Home + Auto or Renters Insurance
If you bundle your car insurance with homeowners or renters coverage, you could instantly get up to 25% off. This is especially useful for Connecticut and Philadelphia drivers, where property insurance bundling significantly reduces overall costs.
3. Pay-in-Full or Auto Pay Discounts
Opting for annual payments instead of monthly installments often saves $50–$120 per year. Setting up automatic payments also qualifies for loyalty discounts with insurers like GEICO and Progressive.
4. Student, Military, and Senior Savings
- Students with a 3.0 GPA+ often receive Good Student Discounts
- Military members, veterans, and their families qualify for special low rates with USAA and GEICO
- Drivers over 55 can take mature driver safety courses to reduce rates
Which State Has the Cheapest Car Insurance Overall?
Based on 2025 data, Tennessee takes the lead, followed closely by Arkansas and Kentucky for budget-friendly premiums. Meanwhile, Louisiana and Philadelphia drivers should focus on aggressive discount stacking and telematics programs to bring costs down.
Should You Stick to Minimum Liability or Upgrade to Full Coverage?
If your vehicle is older than 10 years or worth under $5,000, minimum liability insurance might be enough — especially in cheap states like KY or AR.
However, if you drive a newer vehicle, finance/lease your car, or live in high-risk states like Louisiana or Connecticut, full coverage is strongly recommended to protect against theft, floods, and accidents.
| Driver Type | Best Insurance Strategy |
| Young Driver in Kentucky | GEICO + Good Student Discount |
| Homeowner in Connecticut | Liberty Mutual with Home + Auto Bundle |
| Military Family in Louisiana | USAA Full Coverage |
| Commuter in Philadelphia | Erie Insurance + Telematics Program |
Conclusion
Insurance prices change frequently — sometimes every six months. The best way to ensure you’re not overpaying is to:
Compare multiple quotes by ZIP code
Ask for stackable discounts
Consider bundling policies if possible
Switch insurers every 1-2 years if rates increase
FAQs – Cheapest Car Insurance by State
1. Who has the cheapest car insurance in KY?
State Farm and GEICO are typically the most affordable in Kentucky, especially for safe drivers aged 25–55.
2. What’s the cheapest car insurance in Louisiana?
Progressive and Direct Auto offer competitive liability rates. USAA is cheapest for military members.
3. How much is car insurance in Tennessee monthly?
Minimum liability plans start around $65/month, making it one of the lowest-cost states in the U.S.
4. Can I get car insurance quotes in CT online?
Yes — most companies like Progressive, Allstate, and Liberty Mutual provide instant quotes online with no obligation to buy.
5. Is Philadelphia car insurance more expensive than Pennsylvania overall?
Yes, Philadelphia has some of the highest premiums in PA due to traffic density and higher claims volume.
