Car insurance rates continue to stay steady moving further into 2025. The national average rate for full-coverage car insurance remained at $192 per month, according to Insurify data. The national average liability rate increased slightly from $101 per month to $102 per month by the end of February.
Rates in Washington, D.C., continued to increase during February, climbing to $359 per month for full coverage and $196 for liability coverage. Rates there were $329 for full coverage and $174 for liability in January.
Conversely, some states saw significant decreases for full coverage. Michigan rates fell from $292 to $284. Nebraska full-coverage rates also fell, sliding from $183 to $177.
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Insurance rates can vary greatly based on location, which influences factors like exposure to extreme weather, traffic congestion, and vehicle crime rates.
For most states, rates stayed steady with fluctuations of only a few dollars or less. But some areas saw bigger jumps, like Washington, D.C., Delaware, Massachusetts, and Vermont.
Michigan and Nebraska saw big decreases in full-coverage rates.
Washington, D.C., was the most expensive area for car insurance in February. Maryland, New York, and South Carolina continue to rank among the most expensive states, a trend from 2024. Despite Michigan’s rate decreases, it still ranks as one of the most expensive states.
Wyoming continues to hold its position as the cheapest state for car insurance, with both liability and full-coverage rates well below the national averages of $102 and $192, respectively.
Here are the states with the lowest rates in February.
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 or 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: 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 collision and comprehensive coverage deductible (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.
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