Average U.S. car insurance premiums dip slightly as state disparities persist

Car insurance rates across the United States saw a slight decrease in July, with the national average for full-coverage policies dropping from $193 to $191 per month, according to data from Insurify. The average monthly rate for liability-only coverage remained unchanged at $107.

State-by-state data shows that insurance costs continue to vary widely depending on location. Factors such as weather events, local repair costs, traffic congestion, and vehicle crime rates all play a role in determining premiums. Most states experienced minimal changes—fluctuations of only a few dollars—but some areas reported more notable shifts. For example, New Jersey and Rhode Island had larger increases, while Kentucky, Connecticut, Maryland, Mississippi, New York, and Arkansas saw significant decreases.

Washington, D.C., remains the most expensive area for car insurance with an overall average rate of $276 per month. Maryland and Connecticut also rank among the highest-cost states. New York dropped to fourth place after previously holding the top spot two months ago. Nevada rounds out the top five.

On the other end of the spectrum, North Carolina continues to have the lowest car insurance rates nationwide at $75 per month on average. Other low-cost states include New Hampshire ($77), Wyoming ($82), Iowa ($83), and Idaho ($87). These states have both liability and full-coverage averages well below national levels.

Insurify’s analysis uses rolling medians: two-year medians for full-coverage rates in most states and one-year medians for liability-only rates or for certain states’ full-coverage prices.

The report highlights several factors that affect individual car insurance premiums. These include driving history (such as accidents or violations), age (with less experience often leading to higher rates), gender (with women statistically less likely to be involved in risky driving), location-specific risks like weather or crime rates, credit history (drivers with better credit tend to file fewer claims), type of vehicle and its safety features, annual mileage driven, equipment like advanced safety systems, coverage type and limits selected by policyholders, and deductible amounts chosen.

According to Insurify’s 2025 car insurance report projections at https://insurify.com/insights/car-insurance-trends/, average costs are expected to rise by about 5% this year. Every state except New Hampshire requires drivers to carry minimum liability coverage; however, industry professionals recommend purchasing more than just minimum coverage for adequate protection against financial losses in at-fault accidents. Those who lease or finance vehicles are typically required by lenders to obtain full-coverage policies.

Drivers looking to save money on their premiums can take several steps: practicing safe driving habits; seeking available discounts such as those for good students or multiple cars; increasing deductibles on collision and comprehensive coverage; carefully choosing coverages based on personal risk tolerance; and shopping around among different insurers each time a policy is up for renewal.

“All rates displayed in the table are averages of Insurify price data through the end of July 2025. Full-coverage rates represent two-year rolling medians for most states. Liability-only rates — and full-coverage prices for Maine, Massachusetts, Michigan, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, and Vermont — represent one-year rolling medians.”