Car insurance rates rising as much as 10% in states in 2025, research says

Car insurance rates are rising again in 2025 and some states are worse off.

The yearly cost for full-coverage auto insurance is expected to rise an average of 5% across the United States by the end of 2025 from 2024, according to research by insurance comparison site Insurify, based on a review of more than 97 million rates on its platform.

That is an average yearly price of $2,435 per vehicle in 2025, up from $2,313 in 2024 and $2,019 in 2023. 

Car insurance rates have shot up since 2022, boosted by inflation, natural disasters, higher repair costs and increasingly expensive technology such as cameras, sensors and automated driving.

The last time average rates for full-coverage auto insurance fell was in 2020, Insurify said, largely due to less driving because of the coronavirus pandemic.

Still, the projected 5% rate increase is far lower than the nearly 15% spike in 2024 from 2023.

Insurify predicted a 22% increase in car insurance rates in 2024 from 2023, ConsumerAffairs previously reported, which shows how these projections can be off.

Even so, Insurify said 13 states are expected to see rates rise higher than the national average in 2025.

Insurify said the five states it predicts to see the biggest car insurance rate increases in 2025 are Florida, New York, Georgia, Nevada and Delaware, where drivers could see average prices rise by up to 10%.

Florida

• Projected average annual cost for full-coverage auto insurance by end of 2025: $3,484
• Projected percent increase in 2025 versus 2024: 10%

Drivers in Florida paid $3,166, or 35% more than the national average for full-coverage auto insurance at the end 2024, Insurify said.

Financial losses in 2022 “sent Florida’s struggling insurance market into a tailspin,” Insurify said, spurring an insurance crisis today that is hurting both homeowners and car owners.

New York

• Projected average annual cost for full-coverage auto insurance by end of 2025: $4,183
• Projected percent increase in 2025 versus 2024: 10%

New York has long had higher car insurance rates because of its dense population, which raises the risks of accidents and losses for insurers, Insurify said.

Recent regulations have pressured insurers, but may also bring some relief.

In 2023, New York required insurers to provide supplemental liability coverage for spouses, which Insurify said has added to the financial burden on insurers.

On the other hand, the state’s 2024 Auto Insurance Consumer Relief Act waives a vehicle photo inspection requirement, which previously suspended coverage for drivers who didn’t meet the 14 day deadline.

“The new policy could reduce New York’s share of uninsured motorists, which could reduce rates in the state, as a high rate of uninsured drivers can put upward pressure on premiums,” Insurify said.

Georgia

• Projected average annual cost for full-coverage auto insurance by end of 2025: $3,052
• Projected percent increase in 2025 versus 2024: 8%

Georgia’s average costs for full-coverage auto insurance were $2,815 at the end of 2024, or 22% above the national average, Insurify said.

But there may be relief on the way: In 2023, Georgia ended a policy that let insurers raise rates immediately after filing.

Now, the state’s uinsurance commissioner has 60 days to review rate filings, which Insurify said “helps curb exorbitant rate hikes.”

Nevada

• Projected average annual cost for full-coverage auto insurance by end of 2025: $3,214
• Projected percent increase in 2025 versus 2024: 8%

Nevada drivers paid an average of $2,973 for full-coverage auto insurance at the end of 2024, or 29% higher than the national average, Insurify said.

Rampant theft is a big reason for the state’s eye-watering car insurance rates.

Car theft in Nevada surged 18% in 2023, according to the National Insurance Crime Bureau.

“Insurers consider vehicle theft risk when determining insurance rates, pushing up full-coverage costs in the state,” Insurify said.

Delaware

• Projected average annual cost for full-coverage auto insurance by end of 2025: $3,308
• Projected percent increase in 2025 versus 2024: 7%

Nevada drivers paid an average of $3,078 for full-coverage auto insurance at the end of 2024, or 33% higher than the national average, Insurify said.

The state’s dense population raises the risks of accidents and the car insurance rates, Insurify said.

Delaware also “doesn’t cap pain and suffering damages, which means insurer payouts in the state may be higher for severe or fatal accidents. Insurers also consider these losses when setting rates,” Insurify said.

Where are car insurance rates falling?

New Hampshire, Vermont and Hawaii are the only three states where average car insurance prices are expected to fall, but only by as much as 2%.

Data on Alaska wasn’t available because of a limited pool of rates to compare.

Below is a table on car insurance costs by state with 2025’s projections and recent years.

Insurance experts say there are many ways to bring your auto insurance costs down and decide on the best car insurance company.

• Shop around: If you have the time, spend up to a couple hours plugging in your information at various providers to make sure you get many quotes to compare. You can also use websites to quickly compare prices, such as Insurify, The Zebra and Value Penguin. 

• Speak with insurance agents: An agent might know about current deals and smaller, cheaper companies that aren’t as well known.

• Bundle insurance: You can get discounts for combining your auto insurance with other insurance like homeowners, renters and motorcycle insurance.

• Improve your credit: Check for errors in your credit score and pay off debt.

• Pay-as-you go: A lot of insurers will slash premiums based on how much you drive, which is especially helpful if you work from home.

• Pay in full: Some insurers give discounts if you pay your premium in full, including in six-month installments, instead of monthly.

• Telematics: If you are comfortable with your data getting collected, you can plug in a device in your car or download an app on your phone that watches your driving behavior and calculates your insurance premium, such as if you speed or you slam on the brakes a lot. Telematics can significantly lower costs if you are a good driver.

• Bare-bones coverage: This makes more sense for older, less valuable cars. It is risky, but you can opt only for liability coverage if you damage another person’s vehicle, instead of additional coverage if you damage your car or it is stolen.

• Miscellaneous discounts: Some insurers give discounts if teenagers have good grades, you are a member of the military, have an anti-theft device on your car or if you have a paperless insurance policy.

Email Dieter Holger at dholger@consumeraffairs.com.