There are several factors which determine the insurance cost for a vehicle. These include how old you are, your driving record, the kind of vehicle you drive, in some places your credit score and also where you live.

In this feature, let us have a look at the ten cities where the cost of insurance is the lowest in the country. Surprisingly, three of these cities are from the state of Maine, while the remaining seven cities are from other states. Have a look at the table below to get a snapshot of the top ten cities with the lowest average car insurance premium per annum.

Rank City/ State State Average Insurance Premium Per Annum ($)
1 Portland ME 788
2 Augusta ME 800
3 Asheville NC 808
4 Boise ID 812
5 Maine ME 827
6 Champaign IL 869
7 Vermont VT 873
8 Tucson AZ 892
9 Des Moines IA 907
10 Madison WI 907

One of the factors that contribute to the low cost of car insurance in Maine is that there are extremely strict rules for young drivers. These laws are designed to reduce accidents caused by young, inexperienced drivers who are easily distracted by conversation and other noises. This reduces the overall number of accidents, thus directly reducing the insurance cost.

However, the insurance cost is just one factor that determines the total cost of ownership while buying a new or used car. The median price of the car varies from one state to another, and even within the state.  In order to get the best price for your car, be sure to take into account the median price and the average cost of insurance for a certain number of years, say five to seven years.

Also, having a good driving record as well as a good credit score, and selecting a vehicle such as a minivan, SUV or a family sedan can bring down the cost of insurance.