Twelve states projected for double-digit car insurance hikes due to rising costs and new tariffs

Full-coverage car insurance rates are increasing nationwide, with 12 states expected to see year-over-year hikes of 10% or more by the end of 2025, according to a recent report from Insurify. The report notes that tariffs are a significant factor in these rising costs. If tariffs were not included, only seven states would experience double-digit rate increases.

“During the first half of the year, we saw some rate stability and even decreases in certain states,” said Matt Brannon, study author at Insurify. “But it appears that trend will reverse in the second half of 2025, and some states will feel the pain more than others.”

Rhode Island is projected to have the highest increase in full-coverage premiums. At the end of 2024, Rhode Island's average annual cost was $2,855 compared to Connecticut’s $2,438. Despite its small population, Rhode Island experienced a 37% rise in road fatalities during 2023 based on data from the National Highway Traffic Safety Administration. Providence drivers also spend about 51 hours annually stuck in rush hour traffic according to GPS company TomTom. Both accident rates and congestion contribute to higher auto insurance premiums.

Michigan is forecasted as having the second-highest increase by year-end 2025; with tariffs factored in, Michigan’s rates could rise by as much as 19%. Washington D.C. and Maine may also see increases up to 16%.

Uncertainty around tariffs continues to influence car insurance pricing trends. “Insurers have said tariffs could lead to higher-than-expected rate increases, but we predict rates will continue to rise regardless of what happens with tariffs,” Brannon said.

Projected annual premium increases for select states include:

- Rhode Island: $3,430 (+20%) with tariffs

- Michigan: $3,280 (+19%) with tariffs

- Washington D.C.: $3,961 (+16%) with tariffs

- Maine: $1,415 (+16%) with tariffs

Other states facing notable increases include Delaware (up to +15%), Georgia (+14%), Nevada (+13%), Hawaii (+12%), New Jersey (+12%), South Dakota (+11%), Oklahoma (+10%), and Virginia (+10%).

Many factors affect individual premiums such as inflation and market conditions like tariffs; however, personal driving history remains most influential on pricing decisions. “Your driving history is the most important factor in determining your car insurance costs,” Brannon noted.

Brannon recommends safe driving and maintaining a clean record for better rates. He also suggests increasing deductibles or reducing coverage if appropriate for paid-off vehicles—though this means drivers would be responsible for repairs or replacement if an accident occurs. Comparing quotes from several insurers every six months can help consumers find lower premiums.