2025 Auto Insurance Trends Report

How much will auto insurance cost this year?

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Susan Meyer

Senior Editorial Manager

Susan is a licensed insurance agent and has worked as a writer and editor for over 10 years across a number of industries. She has worked at The Zebr…

Credentials
  • Licensed Insurance Agent — Property and Casualty
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Stuart Winchester

VP

Stuart joined The Zebra as a VP in July 2024. Previously he was the Founder and CEO of Marble, which was acquired by The Zebra. Before Marble, he wor…

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  • 8+ years as a licensed and active insurance agent
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Beth Swanson

SEO Content Strategist

Beth joined The Zebra in 2022 as an Associate Content Strategist. She is a licensed insurance agent whose goal is to make insurance content easy to r…

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  • Licensed Insurance Agent — Property and Casualty

The rising tide of insurance costs in 2025

Car insurance is a critical financial safeguard that protects you in an accident, theft or other unexpected disaster. But this protection comes at a cost, and it's different for everyone.

Rising car insurance rates affected many Americans in 2024 and will likely continue to do so in 2025. These price increases are driven by factors such as increased claims, frequent natural disasters and changing insurance regulations.

The Zebra is the nation’s leading insurance comparison site and an independent source for auto insurance quotes, industry research and educational resources for consumers. Our Auto Insurance Trends Report explores rates across all 34,500 U.S. ZIP codes over the past decade to identify trends and critical factors impacting rate changes and what that means for 242 million U.S. drivers in 2025.

 Image says: The average American driver is paying $2,189 for car insurance.

Overall — and there are some significant variations based on location, which we’ll dive into below — the average driver in the U.S. is paying $2,189. That’s a nearly 19% increase over the previous year. Over the past 10 years, there has been an overall increase of 78%!

 Graph showing how much insurance has risen in the last 10 years.

What’s driving historic increases in insurance rates?

There’s no one thing we can point to that is the sole cause of this dramatic jump. Unfortunately, it’s the culmination of several factors working together.

Rising repair costs

As we know, car insurance pays for car repairs after an accident. When car repair costs rise, so do insurance costs. Average repair costs increased by 3.7% in the first half of 2024.[1]While this might not seem like a huge jump, it’s built on top of several more significant jumps (including an increase of 10% in 2022) from which the prices have never come down.[2]

Government regulations

Insurance is regulated at the state level. State governments determine how much auto insurance drivers are required to carry and how much insurance companies can charge for it. This sometimes leads to insurance companies pulling out of a state. Also, if a state raises the minimum insurance requirements, such as California, Virginia and Utah did this year, people holding the previous minimums will have to pay more to be covered.

Weather and disasters

Wildfires, flooding, hurricanes, hail storms — catastrophes like these cause widespread property damage and an onslaught of auto insurance claims. Insurance companies raise rates to account for these losses. In 2024, there were 24 separate billion-dollar weather events — including extremely costly Hurricane Helene and Hurricane Milton, churning through heavily populated East Coast parts.

Which states pay the most for car insurance?

As mentioned above, where you live is one huge part of why you pay what you do. Some states are seeing bigger changes than others. Here are some quick facts:

  • The states with the highest annual premiums are Florida, Louisiana and Missouri. All three have an average rate of over $3,000 a year! Florida, in particular, has an average rate that’s 50% over the national average.
  • Vermont is the state with the lowest average premiums, which is 50% lower than the national average. 
  • 33 states and DC now pay an average of more than $2,000 a year in auto insurance premiums.

 

Here’s the average insurance premium in all 50 states (plus DC)
State Avg. Annual Premium Avg. Monthly Premium
Alabama $1,959 $163
Alaska $2,115 $176
Arizona $2,353 $196
Arkansas $2,410 $201
California $2,193 $183
Colorado $2,681 $223
Connecticut $2,446 $204
Delaware $2,569 $214
Florida $3,687 $307
Georgia $2,559 $213
Hawaii $1,612 $134
Idaho $1,463 $122
Illinois $1,976 $165
Indiana $1,655 $138
Iowa $1,687 $141
Kansas $2,345 $195
Kentucky $2,930 $244
Louisiana $3,302 $275
Maine $1,535 $128
Maryland $2,425 $202
Massachusetts $1,599 $133
Michigan $2,474 $206
Minnesota $2,062 $172
Mississippi $2,131 $178
Missouri $3,224 $269
Montana $2,214 $185
Nebraska $2,049 $171
Nevada $2,730 $228
New Hampshire $1,423 $119
New Jersey $2,338 $195
New Mexico $2,031 $169
New York $2,526 $211
North Carolina $1,531 $128
North Dakota $2,085 $174
Ohio $1,479 $123
Oklahoma $2,400 $200
Oregon $1,876 $156
Pennsylvania $2,269 $189
Rhode Island $2,641 $220
South Carolina $2,417 $201
South Dakota $2,003 $167
Tennessee $1,997 $166
Texas $2,581 $215
Utah $2,214 $185
Vermont $1,303 $109
Virginia $1,894 $158
Washington $2,157 $180
Washington, D.C. $2,713 $226
West Virginia $2,073 $173
Wisconsin $1,711 $143
Wyoming $1,608 $134

You can look into the individual factors to see why each state has such a variation. 

Let’s take Florida as an example. Florida has the highest rates for insurance, which makes sense when you consider factors like severe weather threats, high incidence of car theft (Florida has the third highest rate in the nation), and high rates of uninsured drivers.[3] These factors serve to make Florida a fairly high-risk state for insurers. Additionally, no-fault laws in Florida — which mean that each driver’s insurance pays for their expenses regardless of fault in the accident — have also led to higher insurance rates overall.

Where is insurance rising the most?

If you live in a higher-risk state, you are probably somewhat used to higher insurance prices. What really gets you is how much it continues to increase in your state. As you can see, there’s a considerable variation in those increases as well.

 U.S. map shaded to show how much insurance is rising in several states

Michigan is the only state to see a decrease in the average amount people pay for car insurance in the past year. Washington, D.C., saw the single biggest jump in car insurance prices from 2023 to 2024, with a whopping 81% increase in a single year. Other states that saw big increases (more than 50%) include Maryland, Texas, Missouri, Washington and New York.

Here you can see the average increase in your state:
State Average Annual Premium in 2023 Avg. Annual Premium in 2024 % Difference
Alabama $1,566 $1,959 25%
Alaska $1,519 $2,115 39%
Arizona $1,644 $2,353 43%
Arkansas $2,140 $2,410 13%
California $1,833 $2,193 20%
Colorado $1,957 $2,681 37%
Connecticut $1,819 $2,446 35%
Delaware $2,072 $2,569 24%
Florida $2,827 $3,687 30%
Georgia $1,874 $2,559 37%
Hawaii $1,116 $1,612 44%
Idaho $1,344 $1,463 9%
Illinois $1,517 $1,976 30%
Indiana $1,357 $1,655 22%
Iowa $1,315 $1,687 28%
Kansas $1,665 $2,345 41%
Kentucky $2,113 $2,930 39%
Louisiana $2,596 $3,302 27%
Maine $1,237 $1,535 24%
Maryland $1,397 $2,425 74%
Massachusetts $1,387 $1,599 15%
Michigan $2,827 $2,474 -13%
Minnesota $1,396 $2,062 48%
Mississippi $1,598 $2,131 33%
Missouri $2,058 $3,224 57%
Montana $1,803 $2,214 23%
Nebraska $1,959 $2,049 5%
Nevada $2,099 $2,730 30%
New Hampshire $1,292 $1,423 10%
New Jersey $1,639 $2,338 43%
New Mexico $1,714 $2,031 18%
New York $1,680 $2,526 50%
North Carolina $1,164 $1,531 32%
North Dakota $1,655 $2,085 26%
Ohio $1,388 $1,479 7%
Oklahoma $1,939 $2,400 24%
Oregon $1,636 $1,876 15%
Pennsylvania $1,617 $2,269 40%
Rhode Island $2,235 $2,641 18%
South Carolina $1,735 $2,417 39%
South Dakota $1,772 $2,003 13%
Tennessee $1,493 $1,997 34%
Texas $1,622 $2,581 59%
Utah $1,615 $2,214 37%
Vermont $1,162 $1,303 12%
Virginia $1,351 $1,894 40%
Washington $1,382 $2,157 56%
Washington, D.C. $1,501 $2,713 81%
West Virginia $1,718 $2,073 21%
Wisconsin $1,397 $1,711 23%
Wyoming $1,551 $1,608 4%

Are you the average driver? Considering the impact or rating factors

So you might be wondering: who this “average driver” is, and how do they actually compare to you? The data in this report comes from a fictitious profile for a 30-year-old single male with good credit and no accident or violation history. He drives a 2015 Honda Accord. 

Assuming you are not this exact profile, you might wonder whether you should expect higher or lower rates than our Average Joe. To figure that out, you’ll want to know how differences in rating factors affect what insurance rates you are offered. The car insurance industry uses information about what kind of car you have, how you drive, and who you are (your age, marital status, and even your credit score) to help determine your risk and your rate.

Let’s dive into the impact of a few of these rating factors:

Most people feel they are paying too much

We asked our customers — people who used The Zebra to compare or purchase insurance policies — their reason for insurance shopping. Not surprisingly, in all but six states, the most common reason for shopping around was because they felt like they were paying too much. This was even true for Michigan, which was the only state in the country to see a decrease in overall insurance prices this year. 

The six states where people didn’t overwhelmingly feel they were paying too much for car insurance? Alaska, Hawaii, Maine, Montana, North Dakota and South Dakota.

1. Age 

Age is a very important rating factor, especially if you’re a new driver. Insurance companies charge significantly more for teenagers than any other group. You will see significant savings as you get older and more experienced behind the wheel. 

Compared to the national average rate of $2,189, teens on their own policy can pay a whopping 198% more!

Average insurance costs for teen drivers
Age Avg. Annual Premium
16 $8,233
17 $6,876
18 $6,166
19 $4,828
Teen Average $6,526

2. Gender

In seven states — California, Michigan, Hawaii, Massachusetts, Montana, North Carolina and Pennsylvania — gender cannot be used as a rating factor in determining insurance rates. However, in most other states it does have an impact. Interestingly, it depends on where you live. In some states, men pay more; in others, women pay more. Nationally, the average tips slightly toward men paying more, but the difference is a nominal 1.53%. 

3. Credit

Your credit score is another rating factor that is only considered in certain states. California, Hawaii, Massachusetts, and Michigan have banned insurance companies from considering credit scores when pricing auto insurance. For those states that do consider credit, it can make a big difference. Raising your credit score by just one tier can reduce your insurance cost by an average of 17%. 

4. What You Drive

The vehicle you drive will also have a big impact on how much you pay for car insurance. More expensive models also often translate to more expensive insurance, as the parts and repairs will be more expensive. The age of the vehicle will also be a factor. New cars are generally more expensive than older vehicles because they cost more to repair or replace. Insurers also account for variations from one model year to the next. Specific model years may be more prone to crashes, thefts or expensive repair costs than others, which can impact the cost to insure the vehicle.

And of course, one of the things that will affect your car insurance prices that you are no doubt familiar with…how you drive. More on that below.

How violations affect insurance rates

As you know, violations and accidents will cause your car insurance rates to increase. Insurers typically consider these violations on your record for up to three years after the incident. The impact of these insurance penalties can often be more than the traffic fine itself. 

The traffic violation with the single biggest impact on car insurance rates is leaving the scene of an accident — a “hit and run.” Drivers charged with this crime can expect to pay, on average, 95% (or $2,000+) more per year for car insurance.

It’s worth noting that much like insurance in general, these penalties also vary significantly by state. You can find more details about how violations affect insurance prices in your state here.

Here's how much common traffic violations will cost you (in terms of insurance rise) in your state:

Violations by state
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Updating data...

Accident/Violation Avg. Annual Premium Avg. Monthly Premium
Wrong way/wrong lane $2,465 $205
Failure to yield $2,469 $206
Speeding 21 - 25 MPH over limit $2,575 $215
Speeding 6 - 10 MPH over limit $2,441 $203
Operating a vehicle without permission $2,898 $241
DUI $3,603 $300
Two Med/PIP claims $2,027 $169
Speeding 11 - 15 MPH over limit $2,454 $204
Open container $2,989 $249
At-fault accident - greater than $2000 $2,924 $244
Driving with a suspended license $3,455 $288
Racing $3,503 $292
Refusal to submit to a chemical test $3,531 $294
Cell phone violation $2,423 $202
None $1,966 $164
Passing school bus $2,573 $214
Driving with expired registration $2,426 $202
At-fault accident - less than $1000 $2,606 $217
One comp claim $2,028 $169
Driving without lights $2,342 $195
Following too closely $2,468 $206
Failure to show documents $2,379 $198
Improper passing $2,482 $207
In 65 MPH zone $2,640 $220
Reckless driving $3,311 $276
Speeding 16 - 20 MPH over limit $2,474 $206
Failure to wear a seat belt $2,365 $197
Leaving scene of an accident/hit and run $3,738 $311
Driving too slowly $2,441 $203
Child safety restraint $2,385 $199
At-fault accident - $1000-$2000 $2,843 $237
Not-at-fault accident $2,041 $170
Two comp claims $2,138 $178
Texting while driving $2,430 $203
Illegal turn $2,469 $206
Failure to stop at a red light $2,481 $207
Speeding in school zone $2,441 $203
One Med/PIP claim $1,966 $164

Source: The Zebra

How to lower your insurance rate

To sum up, insurance rates, for a number of reasons, are going up in 2025. While you can’t counteract the larger forces behind these trends, there are things you can do individually to improve your own rates.

Bundle

Bundle your home/renters/condo insurance policy with your auto policy for savings.

Telematics

If you're a safe driver, look into telematics programs that can help you save based on your driving.

Discounts

Consider all possible discounts that might apply to you.

Shop Around

Shop around to make sure you're getting the best rate with your current carrier.

While 2025 may not look like it will see significant drops in insurance prices (and likely quite the opposite), you can take control this year by staying up-to-date on industry trends and looking for new opportunities to save with your current carrier or by switching.

Methodology

The Zebra’s 2025 Auto Insurance Trends Report analyzes over 32 million car insurance rates to examine how dozens of trends and risk factors affect insurance pricing nationwide.

The auto insurance rates displayed throughout this page come from The Zebra’s Dynamic Insurance Rating Tool. This proprietary insurance premium estimator uses the most recent rate filings across the United States at the ZIP code level to provide the most recent and up-to-date rate data. This data comes from Quadrant Information Services, which sources the most recent and approved rate filings across insurance companies in every state from S&P Global.

Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage at these levels:

  • $50,000 per person/$100,000 per incident for bodily injury liability
  • $50,000 per incident for property damage liability
  • $500 deductibles for collision and comprehensive coverage

To provide insight to consumers on how specific personal factors (like age, location and coverage level) can affect your premium, this base profile is then adjusted for different factors commonly used by insurance companies.

 

Sources
  1. Crash Course Report. [Repairer Driven News]

  2. Car repairs are getting more expensive. [CNBC]

  3. Facts + Statistics: Auto theft. [Insurance Information Institute]