Average U.S. car insurance rates drop slightly; Washington D.C. remains most expensive

Car insurance rates in the United States continued to decline in September, according to new data from Insurify. The national average monthly rate for full-coverage car insurance dropped from $184 to $182, while liability coverage decreased from $103 to $101.

Insurance rates differ widely by state, influenced by factors such as weather exposure, repair costs, traffic congestion, and vehicle crime rates. For example, Maryland has the highest average full-coverage rate at $314 per month, while New Hampshire offers the lowest at $85.

Washington, D.C., remains the most expensive location for car insurance with an overall average of $264 per month. Other high-cost states include Maryland ($253), Rhode Island ($218), Delaware ($216), and New York ($213). Each of these states saw their average rates drop by up to $10 compared to the previous month.

On the other end of the spectrum, New Hampshire now holds the top spot for most affordable car insurance in the country. Its overall average is $70 per month—well below the national averages—with liability-only at $54 and full coverage at $85. Wyoming ($71), Iowa ($82), North Carolina ($83), and Idaho ($85) round out the list of least expensive states.

Insurify’s data is based on price information collected through September 2025. Most full-coverage rates represent two-year rolling medians; however, liability-only rates—and full-coverage prices for certain states—are based on one-year rolling medians.

Several factors affect how much drivers pay for car insurance. These include driving history, age, gender, location, credit history, vehicle make and model, how much a vehicle is driven each year, safety equipment installed in vehicles, type of coverage selected, coverage limits, and deductible amounts.

Insurify projects that car insurance costs will rise by 5% in 2025. Every state except New Hampshire requires drivers to carry minimum liability coverage. Insurance professionals advise purchasing more than the minimum required coverage for better financial protection in case of accidents.

To reduce their premiums, drivers are encouraged to drive safely, seek discounts offered by insurers (such as good student or multi-car discounts), increase deductibles where possible, adjust coverages carefully to maintain adequate protection, and compare quotes from multiple companies when renewing policies.

“All rates displayed in the table are averages of Insurify price data through the end of September 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.”