As the automotive industry grapples with the aftermath of the Trump Administration's tariffs, a glimmer of hope has emerged for car owners: insurance rates have begun to stabilize, with a 6% decrease in full-coverage premiums across the US in 2025. According to a report from Insurify, an online insurance brokerage, the average annual full-coverage premium fell to $2,144, with 39 states seeing a decrease in rates. However, not all states were created equal, with some experiencing significant hikes in insurance costs. The decline in insurance rates is a welcome change for drivers, who saw average premiums increase 46% from 2022 to 2024. Insurify attributes this surge to the rise in risky driving behavior during the pandemic. Conversely, the company notes that average claim rates also increased due to higher repair costs for tech-laden new vehicles. Insurers have now accumulated enough revenue to absorb tariff-driven costs without further price hikes, with ...
As the automotive industry grapples with the aftermath of the Trump Administration’s tariffs, a glimmer of hope has emerged for car owners: insurance rates have begun to stabilize, with a 6% decrease in full-coverage premiums across the US in 2025. According to a report from Insurify, an online insurance brokerage, the average annual full-coverage premium fell to $2,144, with 39 states seeing a decrease in rates. However, not all states were created equal, with some experiencing significant hikes in insurance costs.
The decline in insurance rates is a welcome change for drivers, who saw average premiums increase 46% from 2022 to 2024. Insurify attributes this surge to the rise in risky driving behavior during the pandemic. Conversely, the company notes that average claim rates also increased due to higher repair costs for tech-laden new vehicles.
Insurers have now accumulated enough revenue to absorb tariff-driven costs without further price hikes, with many cutting rates to attract and retain new customers. However, this trend is not universal, with three states and the District of Columbia experiencing significant increases. New Jersey, Rhode Island, and Michigan saw rates rise by 20%, 13%, and 12%, respectively, with D.C. boasting the highest average full-coverage car insurance rates nationwide, at $4,017.
Insurify’s rate changes tended to follow existing cost trends, with insurance becoming more expensive in states that already had higher rates and less expensive in states with lower baseline rates. This trend is expected to continue in 2026, widening the gap between the states where insurance is the most and least expensive.
When it comes to specific models, Insurify found decreases in most cases, with 48 of the 50 top-quoted models surveyed seeing rate cuts in 2025. The exceptions were the Tesla Model S and Model X, which saw rate increases of 9% and 7%, respectively.
As the automotive industry navigates these complex and dynamic markets, one thing is clear: affordability is a top priority for car owners. With insurance rates showing signs of stabilization, drivers can breathe a sigh of relief, knowing that they’re not being priced out of the market.
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