Feb 3, 2026 - Economy
Car insurance rates are falling — but not everywhere
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Car insurance prices dipped last year after a post-pandemic stretch of skyrocketing costs, a new Insurify report finds.
- The average annual full-coverage premium fell 6% nationally from 2024 to 2025, to $2,144.
- Some states saw much larger drops, including Wyoming (-30%), Iowa (-25%) and Arkansas (-23%).
Reality check: That relief comes after car insurance costs rose 46% from 2022 to 2024, "partially due to risky driving behavior following the pandemic," said Insurify, an insurance-comparison platform.
- Average rates are up big time in some places, including New Jersey (+20%) and Washington, D.C. (+18%).
Between the lines: "Insurers' margins are now high enough to absorb tariff-driven costs without raising prices," Insurify said.
- "Now, many insurers are cutting rates to attract and retain new customers."
What's next: Average full-coverage premiums will rise 1% this year, the report predicted — though U.S. tariff policy poses a "potential wrinkle" in such forecasting.
