2025 U.S. Insurance Market: Rising Premiums and Technological Shifts
The average cost of full-coverage car insurance in the U.S. has risen by 12% to $2,638 in 2025, now accounting for over 3% of the median household income of $77,719. This increase is mirrored in homeowner's insurance, which has grown about 60% more expensive over four years, outpacing personal income growth. Inflation impacts all aspects of insurance, from claims related to construction, medical care, and vehicle repairs, driving up coverage costs.