Car insurance rates are falling — but not everywhere

Car insurance prices decreased nationally in the past year, according to a recent Insurify report. The average annual full-coverage premium dropped 6% to $2,144 between 2024 and 2025. Some states experienced significant price decreases, such as Wyoming, Iowa, and Arkansas. This decrease follows a steep rise in costs, with a 46% increase from 2022 to 2024. This rise was partially influenced by risky driving patterns post-pandemic. However, some areas like New Jersey and Washington, D.C., saw substantial increases. Insurify suggests insurers' margins have improved, allowing them to lower rates to attract customers. The report anticipates a 1% increase in average premiums this year. However, changes in US tariff policy could affect future predictions.