State of Auto Insurance in 2025

That's a significant slowdown from the past two years, when car insurance rates rose an average of 16.5% in 2024 and 12.0% in 2023.

The average cost of car insurance nationwide in 2025 is $175 per month for full coverage. Nevada, Florida and Michigan are the most expensive states in the U.S. for car insurance, all with prices exceeding $250 per month.

The most expensive states for full coverage car insurance are Nevada ($286 per month), Florida ($272) and Michigan ($263). These three states are all 50% more expensive than the national average rate of $175 per month.

Car insurance prices vary dramatically by state, with coverage in the most expensive states being at least 2.5 times as much as the cheapest states.

The three states with the cheapest car insurance barely crack $100 per month for the same policy. Maine drivers pay an average of just $103 per month, while neighboring New Hampshire and Vermont are tied at $107 per month — all for the same level of coverage.

Those prices are about 40% below the national average.

While drivers across the country can expect to pay an average of 7.5% more in 2025, price jumps vary a lot by state.

New Jersey, Washington and California drivers can expect to see the biggest jumps the next time they renew. New Jersey and Washington have estimated increases of 17.2%, while California residents will see a 16.2% increase, on average.

Only one state — North Carolina — has an expected rate drop in 2025 (0.1%). That means NC drivers are the most likely to see no change, or even a slight drop, in their insurance rates next year.

The Bureau of Labor Statistics reported that people paid an average of 19% more for car insurance in 2024 than in 2023, though that also includes increased coverage amounts and higher vehicle replacement costs.

The two cars each cost about $244 per month to insure, which is 16% less expensive than average among the most popular 2024 models.

The most expensive car to insure is the Tesla Model Y, at an average of $396 per month.

New cars generally cost more to insure than older models because they're worth more and it's harder to find replacement parts. However, new safety features like blindspot detection can offset that by reducing the chance that drivers get in a crash.

Electric car growth slows, while insurance rates compared to gas cars hold steady

While electric cars continue to grow in popularity, their insurance prices compared to gas cars have stayed steady. The top 10 EVs cost an average of $344 per month to insure — 23% more than the top gas-powered cars, or the same difference as last year.

Electric cars are expected to make up about a quarter of new car sales in 2025, per Cox Automotive.

The biggest new EV of 2024, the Tesla Cybertruck, is also among the most expensive. The average price to insure a new Cybertruck is $422 per month. That's the second-most expensive EV, behind only the Rivian R1S ($432 per month).

Teslas are typically very expensive to insure.

In general, electric cars made by legacy manufacturers like Ford and Volkswagen tend to be about 25% less expensive than those made by EV-only companies. This may be because replacement parts from these brands are easier to find, in addition to lower vehicle prices.

ValuePenguin has a mission to empower people with information and resources to help them make smarter financial decisions. Car insurance can be a difficult and time-consuming topic to understand. This report attempts to unmask some of the critical issues.

In crafting our analysis, we reviewed more than 20 million quotes for different drivers, adjusting for the factors that impact auto insurance premiums the most. We gathered rates from 45 insurance companies across the country since rates can vary widely by company.