U.S. car insurance rates remain steady into March 2025

Giorgos Zacharia, PhD Co-founder | Insurify

Car insurance rates in the United States have remained relatively stable as of March 2025, with some fluctuations observed across different states. According to Insurify data, the national average rate for full-coverage car insurance is $192 per month, while liability coverage saw a slight increase from $101 to $102 per month by February's end.

Washington, D.C., experienced a notable rise in rates during February. Full-coverage rates climbed to $359 per month, up from $329 in January. Liability coverage increased to $196 from the previous month's $174. Conversely, Michigan and Nebraska witnessed decreases in their full-coverage rates. Michigan's rate fell from $292 to $284, and Nebraska's decreased from $183 to $177.

State-by-state variations are influenced by factors such as weather conditions, traffic congestion, and vehicle crime rates. While most states maintained steady rates with minimal changes, Washington, D.C., Delaware, Massachusetts, and Vermont experienced significant increases.

Despite the reductions in Michigan’s insurance costs, it remains among the states with the highest overall rates alongside Washington D.C., Maryland, New York, and South Carolina. Wyoming continues to offer the lowest car insurance rates nationally.

Insurance professionals highlight several factors affecting car insurance premiums: driving history, age, gender, location, credit history, vehicle type and usage, safety features on vehicles like lane-keeping assist or blind-spot warning systems. Coverage type and limits also play a role; generally speaking liability-only coverage is less expensive than full coverage.

To save on car insurance costs drivers are advised to drive safely take advantage of available discounts consider higher deductibles adjust coverages appropriately and comparison shop at policy renewal times.

Every state except New Hampshire mandates at least minimum liability coverage for drivers; leasing companies often require full-coverage policies when vehicles are financed or leased.