U.S. car insurance rates drop slightly; Washington D.C., North Carolina lead high-low extremes

Car insurance rates in the United States experienced a slight decrease in June, according to data from Insurify. The national average rate for full-coverage car insurance dropped from $196 per month to $193 per month, while the national average liability rate remained steady at $107 per month.

Insurance rates can vary significantly by state due to factors such as weather conditions, repair costs, traffic congestion, and vehicle crime rates. Most states saw stable rates with minor fluctuations, but New Jersey and Rhode Island experienced larger increases. In contrast, New York, Connecticut, Massachusetts, Michigan, and Arkansas saw notable decreases in their rates.

The report highlights Washington D.C. as having the highest car insurance rates in June 2025, surpassing New York. Maryland and New York remain among the most expensive states for car insurance. Conversely, North Carolina is noted as the cheapest state for car insurance.

Several factors influence car insurance rates for drivers: driving history, age, gender, location, credit history, vehicle make and model, vehicle usage and equipment features like safety systems. Coverage type and limits also affect premiums.

Insurify's 2025 report anticipates a 5% increase in the average cost of car insurance this year. While all states except New Hampshire require minimum liability coverage by law, drivers are advised to consider additional coverage for better financial protection.

To reduce car insurance costs, drivers are encouraged to drive safely to avoid claims and seek discounts offered by insurers. Increasing deductibles can also lower premiums. Adjusting coverages appropriately and comparison shopping when policies are up for renewal are other recommended strategies.