Current Trends in Car Insurance Rates Across the U.S.
According to recent figures from Insurify, the national average for liability-only car insurance remained steady at $105 per month in July, while full-coverage insurance saw a slight increase to $196. This marks a subtle rise from June's full-coverage average of $193. Over the past six months, liability-only insurance costs have stayed stable, whereas full-coverage prices have gradually climbed.
Insurance premiums vary significantly by geographic location due to factors such as exposure to severe weather, congestion, and vehicle crime rates. In July, most states reported minimal changes in average rates, with a slight downward trend overall. Notably, Maryland and Michigan stood out with the highest car insurance costs.
As of August, Maryland led the nation with the highest average insurance costs at $264 per month, including $188 for liability-only and $339 for full coverage. Maryland also had the highest nationwide full-coverage rate in July. Meanwhile, Connecticut experienced the highest average cost for liability-only insurance at $211 per month, significantly above the national average.
Conversely, North Carolina reported the lowest insurance average in July, at $86 per month. However, this could change in 2025 as the state's minimum liability insurance requirements will increase on January 1, 2025.
Insurance premiums are influenced by numerous rating factors insurers use to assess risk, including driving history, age, gender, location, credit history, vehicle type, and usage. The type and extent of coverage also significantly impact rates, with liability-only coverage generally costing less than full coverage.
Except for New Hampshire, all U.S. states mandate at least minimum liability coverage. Industry experts recommend additional coverage for enhanced financial protection, especially in at-fault accidents. Additionally, drivers leasing or financing vehicles are typically required to obtain full-coverage insurance.
To manage insurance costs, drivers can adopt strategies such as safe driving, exploring discounts, considering a higher deductible, adjusting coverage levels cautiously, and shopping for competitive rates during policy renewals. Insurify's analysis of over 97 million car insurance rate quotes informs these findings, utilizing rolling medians to stabilize data amidst market volatility. For a detailed rate history, Insurify's Auto Insurance Data Center offers access to comprehensive annual and monthly median costs for full coverage.