June Update: U.S. Car Insurance Rates Slightly Decline, Regional Variations Persist

Car insurance rates in the U.S. saw a slight decline in June, with the national average for full-coverage insurance dropping from $196 to $193 per month, while liability coverage rates remained steady at $107 per month. This small adjustment reflects variable factors across different states, where most regions experienced minimal changes, but some states like New Jersey and Rhode Island saw notable increases. Conversely, decreases were seen in states including New York, Connecticut, Massachusetts, Michigan, and Arkansas. Washington D.C. now has the highest average car insurance rates, surpassing New York, with Maryland and New York still among the most expensive. The cheapest insurance rates are found in North Carolina, maintaining its position below national averages, and Hawaii entering the top five cheapest states due to low liability costs. The variability in insurance premiums is largely driven by risk factors considered by insurers, such as driving history, age, gender, geographic location, credit history, vehicle specifics, coverage type, limits, and deductibles. Insurify's 2025 outlook predicts a 5% increase in average car insurance costs over the year. Regulatory requirements mandate minimum liability coverage in every state except New Hampshire, with additional coverage often required for leased or financed vehicles. Drivers seeking to reduce premiums are encouraged to practice safe driving habits, explore insurer discounts, increase deductibles, adjust coverage appropriately, and shop multiple carriers for competitive rates. Insurify's data is based on an extensive analysis of over 97 million car insurance quotes from various insurers across all states, reflecting median premium prices that account for market volatility and regulatory rate adjustments. These findings highlight ongoing pricing trends and risk-based pricing mechanisms that influence auto insurance markets across the United States.