Car insurance rates held steady across the United States to start 2025. The average rate for full-coverage car insurance decreased slightly from $193 per month to $192 per month by the end of January. Meanwhile, the national average rate for liability-only car insurance held flat at $101 per month.
Washington, D.C., saw the most dramatic increase, climbing from a monthly rate of $278 for full coverage in December 2024 to $329 to start 2025. The average monthly liability rate in Washington, D.C., also saw a dramatic increase, climbing from $154 to $174 per month.
Fellow East Coast states Delaware and Connecticut saw smaller monthly increases as well, while full-coverage rates in Florida fell from $265 per month to $257.
)
Insurance rates can vary greatly based on location, which influences factors like exposure to extreme weather, traffic congestion, and vehicle crime rates.
Overall, though, rates held steady between the end of 2024 and the beginning of 2025. No state saw an increase or decrease of more than $8 in its average monthly rate.
Rates in Washington, D.C., however, rose dramatically.
All the states with the highest car insurance averages are along the Atlantic coast. Maryland tops the list once again, with an overall average rate of $276 per month. Meanwhile, large rate increases at the end of the year have Washington, D.C., sitting in third.
The national overall average is $147 per month. Here are the states with the highest car insurance rates.
The states with the lowest car insurance aren’t confined to a specific region or even population size. Wyoming and Idaho are sparsely populated, while Ohio and North Carolina have larger populations. Yet all fall well below the overall national average of $147 per month for car insurance.
Here are the states with the lowest car insurance averages as of Feb. 1, 2025.
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 risk closely correlate with age, actuarial data shows.
Gender: Statistically, women are less likely to cause accidents and engage in risky behavior 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: Actuarial data indicates 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 that 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 deductible for collision and comprehensive coverage (liability coverage has no deductible) reduces rates since the insurer assumes less risk for the cost of repairs.
Every state except New Hampshire requires drivers to carry at least 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 them financially.
Comparison shop. Drivers should compare rates from multiple companies every time their policy comes up for renewal.
)
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
)
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Featured in
){kind=logo}
){kind=small}
){kind=small}
)
)
Licensed property and casualty insurance agent
8+ years editing experience
NPN: 20461358
Featured in
){kind=small}
)
)