Summary
Car insurance rates have decreased by 6% on average in the U.S. from 2024 to 2025, with some states experiencing larger declines. Despite this decrease, certain areas like New Jersey and Washington, D.C., saw rate increases.
Key Facts
- Car insurance premiums in the U.S. fell by 6% on average from 2024 to 2025.
- The national average for full-coverage insurance is $2,144 per year.
- States like Wyoming, Iowa, and Arkansas experienced significant decreases, with rates dropping by 30%, 25%, and 23% respectively.
- Insurance costs had previously risen by 46% from 2022 to 2024.
- This cost increase was partly linked to risky driving after the pandemic.
- Some areas, including New Jersey and Washington, D.C., saw rates increase by 20% and 18% respectively.
- Insurance companies are lowering rates to attract new customers.
- The report forecasts a 1% rise in average premiums this year, with U.S. tariff policy affecting predictions.
