Cheapest Auto Insurance in Salem, Oregon (2025)

Drivers in Salem can expect to pay an average of $177 per month for full-coverage car insurance and $120 for liability-only coverage. The city’s rates are higher than Oregon’s average of $120 and slightly higher than the national average of $144 per month.

The capital of Oregon, Salem is the state’s second-largest city, with a population of around 177,000.1 It also has a comparatively high crime rate, which could contribute to its higher-than-average car insurance rates.2 However, rates vary based on your driving record, age, ZIP code, and other factors, so it’s important to compare car insurance quotes from multiple insurers before buying.

Cheapest car insurance companies in Salem

The cheapest car insurance for one driver may not necessarily be the cheapest option for you — insurance companies weigh driving factors differently. That’s why it’s important to get quotes from a few companies to make sure they’re not just the cheapest overall but the cheapest for your specific needs.

Here’s a breakdown of some of the best car insurance companies in Salem, Oregon.

Best insurer for affordability: Safeco

Best insurer for infrequent drivers: Mile Auto

Best insurer for flexible coverage options: Liberty Mutual

How to get the cheapest car insurance in Salem

Car insurance companies consider a variety of factors when determining your premiums, like your age, driving record, vehicle type, ZIP code, and even your credit score. Each company weighs these factors differently, so you’ll get varying rates across the board.

Here are some tips to help you find cheap car insurance rates in Salem:

• Shop around. You may be surprised how much rates can vary between insurers. It’s a good idea to shop around and get quotes from multiple insurers so you know you’re getting the best deal for your needs.

• Increase your deductible. A deductible is an amount you must pay before your insurer starts paying a covered claim. Raising your deductible may lower your insurance bill but increase your out-of-pocket costs in the event of an accident.

• Improve your credit score. Insurers in Oregon can consider your credit score when setting rates and may perceive people with lower credit scores as riskier and adjust rates accordingly. Improving your credit score may lower your insurance costs.

• Ask about discounts. Insurance companies usually offer several discounts that can help you save money on an auto policy, such as good student and defensive driver discounts.

• Bundle your home and auto insurance. Many insurers offer discounts if you bundle your auto insurance with homeowners, renters, or even life insurance.

Cheapest liability-only car insurance in Salem: Mile Auto

Liability-only car insurance helps cover the expenses of the other driver if you cause an accident, such as medical expenses and the cost to repair or replace their vehicle. However, it won’t cover your own vehicle damages and medical bills.

The cheapest insurer for liability-only car insurance in Salem is Mile Auto, with an average cost of $83 per month.

Here are some of the average rates for liability-only car insurance from top insurers in Salem:

Cheapest full-coverage car insurance in Salem: Mile Auto

While liability insurance covers injuries and damage to other people, full-coverage auto insurance protects you and your property. Full coverage is worth considering if you want to avoid paying medical bills and repair costs out of pocket.

The cheapest insurer for full-coverage car insurance in Salem is Mile Auto, with an average cost of $98 per month.

Below are the average rates for full-coverage car insurance policies in Salem.

Car insurance requirements in Oregon

Like in most states, Oregon drivers must carry liability insurance. Keep in mind these are only minimums, and you should consider more coverage to minimize the possibility of out-of-pocket expenses after an accident.

Below are the minimum insurance coverage requirements in Oregon.4

In addition to the state’s minimum coverage, consider the following optional coverage options for broader protection on the road:

Cheapest car insurance for drivers with an incident

Incidents occur on the road all the time. Incidents almost always increase your insurance premium, whether it’s an at-fault accident, speeding ticket, DUI, or other moving violation. Insurance companies consider your driving record when determining your rates, and while multiple violations can affect your rates, you can still find affordable insurance.

Below, we’ll cover what you can expect to pay for insurance after different types of incidents.

Cheapest car insurance for drivers with a speeding ticket: Mile Auto

Insurers see speeding as unsafe driving behavior, which is why drivers with speeding tickets on their records often pay more for insurance. The effect on your premium will vary by insurer and the severity of the ticket.

In addition to an insurance hike, you’ll likely also pay fines. Oregon speeding ticket costs depend on where you’re driving and how many miles above the speed limit you’re going. Speeding in school zones or work zones may result in higher fees.

On average, Salem drivers with speeding tickets pay $168 per month for liability coverage and $248 for full-coverage auto insurance. 

Here are some of the average monthly rates for drivers with a speeding ticket in Salem.

Cheapest car insurance for drivers with an at-fault accident: Mile Auto

Having an at-fault accident on your record will often result in your insurer increasing your insurance rates since insurers consider drivers who have caused an accident to be at higher risk than drivers with clean records. However, the effects on your rate should diminish with time by practicing safe driving habits.

Salem drivers with at-fault accidents on their motor vehicle records pay an overall average of $199 per month for car insurance.

Here are the average car insurance rates for Salem drivers with an at-fault accident on their record.

Cheapest car insurance for drivers with a DUI: Mile Auto

Like anywhere else, driving under the influence in Oregon is a serious offense and can result in fees, license suspension, and even jail time. Aside from that, you’ll likely also see a bump in your insurance costs after a DUI, as insurers perceive you as a riskier investment and adjust rates accordingly.

In Salem, the average rates for drivers with DUIs are $147 for liability-only insurance and $218 for full coverage.

Here are the average car insurance rates for Salem drivers with a DUI on their record.

Cheapest car insurance for seniors: Mile Auto

Age is one of the factors insurers consider when setting rates. The youngest and oldest drivers tend to pay the most for insurance. Rates decrease around age 35 but increase at around age 70. This could be due to an increased risk of injury from an accident, which can lead to higher claims.

On average, senior drivers in Salem pay $146 for a full-coverage policy each month and $99 per month for liability-only coverage.

Here are the average monthly rates for seniors in Salem.

Cheapest car insurance for teens: Mile Auto

Due to their lack of driving experience and high accident rates, teen drivers can expect to pay higher than average premiums. However, teens have ways to lower costs, such as good student discounts, driving a safe vehicle, and staying on a parent’s insurance policy.

Teen drivers in Salem pay an overall average of $305 per month for car insurance.

Here are some of the average monthly auto insurance rates for teen drivers in Salem.

Salem car insurance quotes by credit tier

Oregon allows car insurance companies to consider credit scores when setting rates.5 Generally, drivers with good credit scores can expect to pay less for car insurance, while people with bad credit scores may pay higher premiums.

Here are the average monthly quotes for each of the following credit tiers:

Is car insurance more expensive in Salem?

Yes. Auto insurance is generally more expensive for Salem drivers than in many other parts of the U.S.

On average, Salem drivers pay $149 for car insurance. This is higher than the state average of $120 and the national average of $144.

More cities in Oregon

Car insurance rates vary by city and even ZIP code. Insurers consider factors like population density, crime rate, and weather when determining your premiums.

Here’s how other Oregon cities compare to Salem in terms of car insurance prices.