Once again, car insurance rates fell slightly in July. The national average rate for full-coverage car insurance dipped from $193 per month to $191 per month, according to Insurify data. The national average liability rate held steady at $107 per month.)
Insurance rates can vary greatly based on location, which influences factors like exposure to extreme weather, repair costs, traffic congestion, and vehicle crime rates.
For most U.S. states, rates stayed steady, with fluctuations of only a few dollars or less. But some areas saw bigger jumps, like New Jersey and Rhode Island.
Kentucky, Connecticut, Maryland, Mississippi, New York, and Arkansas saw big rate decreases.
Here are the monthly averages for full and liability coverage across the country.
Washington, D.C., had the most expensive car insurance in July, retaining the spot it took in June.
Maryland and Connecticut continue to rank among the most expensive states, while New York has fallen to the fourth spot after being the most expensive state two months ago.
North Carolina retains its status as the cheapest state for car insurance, with both liability and full-coverage rates well below the national averages of $107 and $191, respectively. All five of the cheapest states held their position from the previous month, but average rates in each state dropped from their July averages.
Here are the states with the lowest rates as of Aug. 1.
Car insurance rates can vary significantly among drivers based on many factors that insurers use to estimate risk. Some common rating factors include:
Driving history: Insurers consider whether a driver has a clean record or infractions such as speeding, driving under the influence, or causing an accident.
Age: Driving experience and accident risks closely correlate with age, actuarial data shows.
Gender: Statistically, women are less likely to cause accidents and engage in risky behaviors like aggressive driving.
Location: Where a policyholder lives and drives affects their exposure to risk factors such as extreme weather, vehicle crime rates, and accident rates.
Credit history: Data indicates that drivers with better credit are less likely to file car insurance claims than those with poor credit.
Vehicle make and model: Vehicles that are less expensive or have multiple safety features cost less to insure.
Vehicle usage: Driving fewer miles per year reduces a vehicle’s exposure to the day-to-day risks of driving.
Vehicle equipment: Safety features like lane-keeping assist and blind-spot warning can help decrease the risk of accidents.
Coverage type: Generally, liability-only coverage costs less than full-coverage car insurance.
Coverage limits: The amount of coverage you buy affects annual premiums. Minimum coverage is typically the cheapest but doesn’t offer enough financial protection for most drivers.
Deductible: A higher collision and comprehensive coverage deductible (liability coverage has no deductible) reduces rates since the insurer assumes less risk for the cost of repairs.
Insurify’s 2025 car insurance report projects the average cost of car insurance will rise by 5% this year.
Every state except New Hampshire requires drivers to carry a minimum amount of liability coverage. Insurance professionals recommend buying more coverage for greater financial protection in at-fault accidents. And if a driver leases or finances a vehicle, the leasing company or lender will require them to buy full-coverage car insurance.
Drivers can take steps to reduce the cost of car insurance, including:
Drive safely. Avoid speeding, hard braking, distracted driving, and other risky driving behaviors that could cause a claim.
Look for discounts. Most insurers offer discounts, such as good student or multi-car discounts, that can help reduce premiums.
Increase the deductible. A higher collision and comprehensive deductible typically leads to lower rates.
Adjust coverages. Liability-only coverage is the cheapest insurance available, and minimum coverage is the cheapest liability option. But drivers should be careful and buy enough coverage to adequately protect themselves financially.
Comparison shop. Drivers should compare rates from multiple companies every time their policy comes up for renewal.
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