2025 Auto Insurance Statistics and Consumer Report [Study]

Like most everything else in 2025, the auto industry is getting expensive. Between talk of tariffs and EV credits, most of the conversation around auto costs relates to cars themselves, but auto insurance premiums are no exception.

To better understand the current state of the auto insurance market, our team at FinanceBuzz put together this market report to share current trends in the auto insurance sector, how consumers are responding to those trends, and what the industry can look forward to in 2025.

Key findings

• Auto insurance is getting expensive:
  • Auto insurance premiums have increased by 45% since 2019
• Insurance rates vary depending on what state you live in:
  • Rates can range anywhere from $1,230 per year (Wyoming) to $4,312 (Washington D.C.)
• Consumers are slow to switch providers, but it's on the table
  • 42% of insurance customers said they considered switching providers in the last year, but only 14% actually did
  • On average, customers say they'd need $100 in monthly savings to switch
  • 66% of drivers have been with their current provider for 3+ years
• Consumers are cost-conscious when it comes to insurance
  • 1 in 10 Americans have skipped a car insurance payment due to high costs
  • More than a quarter of drivers have avoided filing a claim because they did not want their insurance rates to go up

Average auto insurance premiums

If it feels like insurance costs have been going up recently, that's because they have. Since 2019, the nationwide annual average cost for full-coverage auto insurance has risen by 45%, with all of that increase coming in the last few years.

There are many factors that determine how much a driver pays for auto insurance, from their driving record to the kind of car they drive to where they live and more.

According to data from Insurify, an insurance comparison shopping website, the average annual cost for auto insurance actually decreased from 2019 to 2020 and again from 2020 to 2021 before a slight increase in 2022. Between 2022 and 2023, however, prices rose by nearly $400 annually before rising by more than $400 from 2023 to 2024.

Premium increases this swift and significant may be a big part of why 10% of drivers we surveyed said that they have skipped, missed, or delayed a car insurance payment in the last year due to high costs.

Different states have different minimum requirements when it comes to liability coverage. As a result, the average amount that drivers have to pay in insurance premiums can be drastically different from one state to the next.

According to Insurify, annual costs for car insurance are highest in the nation's capital, with drivers in the District of Columbia facing an average monthly bill of $359 to insure their vehicle. Nearby Maryland is a close second when it comes to insurance costs, with a $343 price tag monthly, while the third-highest insurance costs can be found in New York State, at $318.

Insurance costs are lowest in Wyoming, where drivers pay just $103 in monthly premiums on average, while costs in North Carolina are just a few dollars higher per month at $106. The state with the third-lowest insurance premiums is New Hampshire, with a monthly price tag of $114.

Another major factor when it comes to calculating insurance premium costs is the car you drive. Differences in a vehicle's value, safety records, safety features, and more can drastically alter how much or how little it costs to insure the car in question.

We found the average annual premiums for a year of insurance for each of the 10 best-selling cars in America in 2024 to compare coverage costs for the most popular vehicles on the road today. The most expensive of these cars to insure is the Tesla Model Y, with a hefty $3,996 annual price tag. That annual insurance cost is over $1,300 higher — more than $100 per month — than any other top-selling vehicle.

A Honda CR-V is the most affordable best-seller to insure, with premiums averaging just $1,995 annually, while a Toyota RAV4 is second at $2,180 annually. The Ford F-Series of trucks were the overall best-selling vehicles in the country last year and have the third-lowest annual insurance costs of any top-seller at $2,238.

Auto insurance customers are hesitant to change

One way that drivers can potentially reduce their insurance bill and counteract premium price hikes is to switch auto insurance providers, moving from their old carrier to one with lower rates.

Many drivers aren't taking advantage of this potential savings source, however, as our survey found that two-thirds of people have been with their current insurance provider for three years or more. That includes more than a quarter of drivers (28%) who say they have been with the same auto insurance for more than a decade.

Just because customers are choosing to stay put doesn't mean they have totally ruled out switching providers. While only 14% of respondents said they have actually switched insurance companies in the last year, an additional 42% said they thought about switching. That means that more than half of all drivers (a combined 56%) either switched or considered doing so sometime in the last 12 months.

Additionally, 21% of drivers actually contacted their current provider and negotiated a lower rate, with 38% more saying they considered negotiating. Finally, nearly half of respondents, 48%, compared car insurance rates between their current provider and competitors this year, and another 25% thought about comparison shopping.

For those who made the choice to actually change providers this year, better rates were the number one reason drivers switched insurance companies. More than three-quarters of people who switched (76%) cited better rates as a reason they changed providers, nearly double the percentage that said they changed to get better coverage (40%), which was the second most common reason given.

Given how important savings were among those who did make the switch, we also wanted to see how much drivers said they would need to be able to save to make the hassle of changing providers worth it. Regardless of whether they had switched providers this year or not, the median amount survey respondents said they would need to save to consider switching auto insurance providers is $100 per month, or $1,2000 annually.

Auto insurance customers are avoiding making claims so their rates don't go up

Money is clearly a major factor in determining how drivers choose their auto insurance carrier, and it turns out it can also impact how they choose to use their insurance.

When a customer files a claim with their insurance company, it can and often does increase the amount they're charged for their premiums in the future. For instance, when the accident in question caused minor or superficial damage, drivers could potentially choose not to file an otherwise legitimate claim because they do not want their rates to increase.

In fact, that very decision is one that many drivers have made in the past. More than one out of every four drivers, 27%, said that they have avoided filing a claim with their auto insurance provider in the interest of keeping their rates down.

According to Insurify, the average monthly premium for drivers with an accident on their record is 43% higher than the overall average premium cost for auto insurance, so it isn't that surprising that many drivers would want to avoid putting a claim on record if the damage is minor enough.

Many consumers don't understand what they're paying for

Most drivers know that they need insurance, and they may also know specific minimum coverage thresholds that they need to meet. But how many actually have a comprehensive grasp of what their auto insurance does and does not cover?

When asked to gauge their confidence level as it relates to how well they understand their current auto insurance policy, more than half indicated that they had high levels of confidence in their own comprehension. 37% said they are mostly confident they understand their coverage, while 23% expressed complete confidence, meaning 60% of drivers feel strongly about how well they know what is and isn't covered by their insurance policy.

Advice from the experts

Shopping for car insurance can not only be expensive, but a little daunting. That's why we asked our panel of experts to weigh in.

Can policyholders ever negotiate with providers to lower their rates? What can they leverage if so?

If possible, should you always try to pay in full at the start of a new policy to maximize savings?

Bottom line

Getting the coverage you need doesn't need to break the bank. There are plenty of ways to save and rest assured you're covered when driving.

• See if you're a good fit for top-rated insurance providers. Many of the best auto insurance companies offer deals and discounts for qualifying drivers, which can help reduce costs while also providing top-notch coverage.
• Find the most affordable provider for your needs. For drivers who are particularly cost conscious, some of the best cheap car insurance companies can offer quality coverage at a great price.
• Educate yourself on the different types of insurance and how they are applied. Knowing how car insurance works and what it means can make it easier to understand what to compare and how to find the companies offering the best deal for your actual insurance needs.

Methodology

FinanceBuzz surveyed 1,000 U.S. adults aged 18 or older using a survey platform. Responses were collected in February 2025.