June 2025 U.S. Car Insurance Rates Show Minor Decline Amid Regional Variances
In June 2025, the national average for full-coverage car insurance in the U.S. decreased slightly from $196 to $193 per month, while liability insurance rates remained stable at an average of $107 per month. This marginal decline contrasts with the varied rate fluctuations observed regionally, where states like New Jersey and Rhode Island experienced increases, whereas New York, Connecticut, Massachusetts, Michigan, and Arkansas saw notable decreases. These rate disparities are influenced by localized factors such as extreme weather exposure, vehicle repair costs, traffic density, and crime rates targeting vehicles.
Washington D.C. assumed the position as the state with the highest average car insurance premiums, overtaking New York which had maintained this status for several months. Maryland and New York continue as some of the costliest states, with Connecticut and Nevada ranking fourth and fifth respectively. Conversely, North Carolina retained its status as the most affordable state for car insurance, with liability and full coverage rates considerably below national averages. Hawaii also emerged within the top five cheapest states, primarily due to lower liability insurance averages.
Common determinants of car insurance premium variations include the driver's record, age, gender, residential location, credit history, vehicle type, annual mileage, safety equipment, coverage selection, coverage limits, and deductible amounts. Notably, Insurify projects an overall 5% increase in average car insurance costs for 2025 despite the current slight decreases.
Legally, all states except New Hampshire require a minimum liability insurance level, though higher coverage is frequently recommended to provide adequate financial protection. Furthermore, leased or financed vehicles generally mandate full coverage insurance.
Risk mitigation strategies for drivers seeking to manage insurance expenses include maintaining safe driving practices, securing available discounts, opting for higher deductibles, adjusting coverage types and limits, and conducting thorough rate comparisons at policy renewal.
Insurify's analysis derives from over 97 million insurance application rates collected from over 50 partner insurers nationwide, reflecting median prices for drivers aged 20 to 70 with clean records and average or above credit standing. This data utilizes rolling median calculations over one- or two-year periods, depending on coverage and state, to smooth impact from market volatility linked to insurers' rate adjustment strategies and underwriting approaches in recent years.