Average U.S. car insurance rates drop slightly but remain high in some states

Car insurance rates in the United States declined slightly in August 2025, according to new data from Insurify. The national average monthly premium for full-coverage car insurance dropped from $186 to $184, while liability-only coverage decreased from $104 to $103.

Insurance costs continue to vary widely by state. Factors such as exposure to extreme weather, repair expenses, traffic congestion, and vehicle crime contribute to these differences. For example, full-coverage rates range from a low of $88 per month in Wyoming to a high of $319 per month in Maryland.

Washington, D.C., remains the most expensive location for car insurance nationwide. According to Insurify’s analysis, the five states or districts with the highest average overall premiums as of September 2025 are Washington, D.C. ($269), Maryland ($267), Rhode Island ($237), Delaware ($226), and New York ($222). Liability-only and full-coverage quotes are highest in these areas.

On the other end of the spectrum, Wyoming now has the lowest average car insurance rates in the country, surpassing North Carolina. Other states with lower-than-average costs include New Hampshire, North Carolina, Iowa, and Idaho. In these states, both liability-only and full-coverage premiums fall well below national averages.

Insurify’s data shows that many factors influence how much drivers pay for car insurance. These include driving history (such as past infractions or accidents), age (with less experienced drivers often paying more), gender (with women statistically less likely to be involved in risky driving behaviors), location (which affects risk exposure), credit history (as better credit is linked with fewer claims), vehicle make and model (safer or less expensive cars tend to cost less to insure), annual mileage driven, safety equipment on vehicles, type and amount of coverage purchased, and deductible levels.

The report also notes that every state except New Hampshire requires drivers to carry at least minimum liability coverage. Insurance professionals recommend purchasing higher limits for greater financial protection; leasing companies or lenders typically require full coverage if a vehicle is financed or leased.

Looking ahead, Insurify projects that average car insurance costs will rise by 5% over 2025. To manage increasing premiums, experts suggest several strategies: practicing safe driving habits; seeking available discounts such as those for good students or multiple vehicles; raising deductibles where appropriate; adjusting coverages carefully; and shopping around at each policy renewal period.

All figures referenced are based on Insurify price data through August 2025. Full-coverage rates represent two-year rolling medians for most states; some liability-only rates and certain state-specific data use one-year rolling medians.