Average Car Insurance Costs in 2025
MarketWatch reports the national average for full‑coverage insurance is about $2,433/year (~$203/month). This ranges from $3,481/year in Louisiana to $1,624/year in Vermont.
Insure.com
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insuranceandleisure.com
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J.D. Power
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MarketWatch
Experian shows the full‑coverage average sits at $2,899/year (~$242/month), while minimum liability averages $1,547/year (≈ $129/month).
Experian
Insure.com estimates full coverage at $1,895/year (~$158/month) for a sample profile, though actual rates may be higher depending on individual circumstances.
Insure.com
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ValuePenguin places the national average at $2,101/year (~$175/month), with projected rate increases of 7.5% in 2025, moderating from previous years.
ValuePenguin
Bankrate notes a 12% year-over-year rise, pushing average full-coverage costs to $2,638/year (~$220/month), up from $2,013 in 2023.
Experian
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Bankrate
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MarketWatch
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NerdWallet (via The Curious Ears) cites averages of $2,312/year ($193/month) for full coverage and $625/year ($52/month) for minimum liability.
Insurance Navy Brokers
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thecuriousears.com
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Bankrate
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InsuranceNavy reports full coverage at $2,096/year ($174/month) and minimum coverage at $768/year ($52/month), noting a 31% increase over the previous year.
Insurance Navy Brokers
Why Rates Are Rising
Driving Violations & Claims Severity: A 17% surge in traffic violations (including speeding and distracted driving) has increased risks for insurers. Bodily injury claims severity rose 9.2%, while property damage severity climbed 2.5%.
LexisNexis Risk Solutions
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Higher Repair Costs: Inflation and tariffs on auto parts are ramping up repair expenses. One estimate suggests a nationwide insurance increase of up to 19%, pushing average full coverage premiums toward $2,759/year.
Reasons Insurance
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Investopedia
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Houston Chronicle
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Repair Technology Costs: Advanced driver assistance systems (ADAS), while improving safety, are expensive to fix and recalibrate, adding to premiums.
The Sun
Catastrophic Events: Climate-related damages (e.g., from wildfires, floods, storms) have raised comprehensive claims significantly in recent years.
Wikipedia
Industry Profitability & Competition: Insurers have returned to profitability, shifting focus from rate hikes to customer retention and high-value policyholders.
J.D. Power
Cost Breakdown Summary
Source / Method Full Coverage (Annual) Breakdown / Notes
MarketWatch ~$2,433 Avg; highest in LA ($3,481), lowest VT ($1,624)
MarketWatch
Experian $2,899 Full; min liability $1,547 annually
Experian
Insure.com (sample profile) $1,895 Based on specific driver scenario
Insure.com
ValuePenguin $2,101 Avg; expecting 7.5% rise in 2025
ValuePenguin
Bankrate $2,638 12% YoY increase, up from 2023’s $2,013
Bankrate
NerdWallet $2,312 Full; min liability $625/year
thecuriousears.com
InsuranceNavy $2,096 Full; min liability $768/year
Insurance Navy Brokers
Key Insights
Full‑coverage averages in 2025 range roughly between $1,900 and $2,900/year (~$160–$240/month).
Minimum liability-only policies are significantly cheaper—typically under $1,600/year (~$130/month), depending on state and personal profile.
Insurance costs vary widely by location, with states like Michigan, Florida, or New York seeing much higher averages, while places like Vermont, Maine, or New Hampshire tend to be lower.
Insure.com
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Insurance Navy Brokers
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businessinsider.com
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Experian
Premium increases in 2025 are starting to moderate compared to double-digit surges in 2023–24, partly because insurers regained stability.
Houston Chronicle
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J.D. Power
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barrons.com
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Would you like to explore estimates specific to your state or city, or maybe compare costs for minimum vs. full coverage for your situation? I’d be happy to help with that.