12 States Facing Double-Digit Car Insurance Hikes by End of 2025 – Tariffs Escalating Costs

Rhode Island will see the biggest increase, at 20%, according to new report. Michigan follows closely, at 19%.

Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

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Chris Schafer
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Chris Schafer
Chris SchaferDeputy Managing Editor, News and Marketing Content
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  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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John Leach
Reviewed byJohn Leach
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John LeachSenior Insurance Copy Editor
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  • 8+ years editing experience

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John leads Insurify’s copy desk, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

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Full-coverage car insurance rates are rising across the country, and some states are facing daunting double-digit increases, according to Insurify’s latest car insurance report.

Factoring in the impact of tariffs, 12 states will see steep year-over-year increases of 10% or more. Removing tariffs from the equation would drop the number of states facing double-digit rate increases to seven.

“During the first half of the year, we saw some rate stability and even decreases in certain states,” study author Matt Brannon said. “But it appears that trend will reverse in the second half of 2025, and some states will feel the pain more than others.”

Rhode Island’s jump in fatalities lands it at top of list

Rhode Island’s full-coverage car insurance premiums have historically been high compared to larger states. For example, at the end of 2024, the state’s annual average cost of full-coverage car insurance was $2,855, while nearby Connecticut saw an average of $2,438.

Although the state’s population is small, its number of road fatalities soared 37% in 2023, according to National Highway Traffic Safety Administration data. And drivers in its most populous city, Providence, lose roughly 51 hours per year sitting in rush hour traffic, according to GPS company TomTom.

Accident rates and traffic congestion affect auto insurance rates in an area.

Michigan is likely to see the second-greatest increase by the end of 2025, Insurify predicts. Factoring in the impact of tariffs, Michigan’s auto insurance rates could increase by 19%. And residents of Washington, D.C., and Maine could be looking at 16% increases by the end of the year.

Rates likely to rise more with tariffs

Uncertainty around tariffs is likely to continue affecting car insurance rates, according to Insurify’s report. If insurers decide tariffs will threaten their margins, they’ll likely increase their rates in response, Brannon said.

“Insurers have said tariffs could lead to higher-than-expected rate increases, but we predict rates will continue to rise regardless of what happens with tariffs,” he said.

State
sort ascsort desc
Projected Annual Cost Without Tariffs
sort ascsort desc
Projected Annual Cost With Tariffs
sort ascsort desc
Rhode Island$3,330 (+17%)$3,430 (+20%)
Michigan$3,186 (+16%)$3,280 (+19%)
Washington, D.C.$3,848 (+13%)$3,961 (+16%)
Maine$1,374 (+13%)$1,415 (+16%)
Delaware$3,465 (+12%)$3,566 (+15%)
Georgia$3,133 (+11%)$3,224 (+14%)
Nevada$3,275 (+10%)$3,369 (+13%)
Hawaii$1,634 (+9%)$1,683 (+12%)
New Jersey$2,710 (+9%)$2,789 (+12%)
South Dakota$1,908 (+8%)$1,964 (+11%)
Oklahoma$2,180 (+7%)$2,244 (+10%)
Virginia$2,447 (+7%)$2,519 (+10%)

What’s next: How drivers can save on car insurance

Many factors affect car insurance premiums, including market influences like inflation and tariffs. But the most impactful factors tend to be specific to individual drivers, Brannon said.

“Your driving history is the most important factor in determining your car insurance costs,” he said. Driving safely and maintaining a clean record could help you qualify for the lowest rates.

Additionally, drivers can consider increasing their collision and comprehensive deductibles. Drivers with paid-off vehicles can consider reducing coverage to just liability — but they’ll have to shoulder the cost of repairing or replacing their vehicles if they cause an accident.

Finally, it’s a good idea to compare quotes from multiple insurers every six months, Brannon said.

Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content

Evelyn Pimplaskar is Insurify’s director of content. With 30-plus years in content creation – including 10 years specializing in personal finance – Evelyn’s done everything from covering volatile local elections as a beat reporter to building fintech content libraries from the ground up.

Before joining Insurify, she was editor-in-chief at Credible, where she launched and developed the lending marketplace’s media partnership’s content initiative and managed the restructuring of the editorial team to enhance content production efficiency. Formerly, as tax editor for Credit Karma, Evelyn built a library of more than 300 educational articles on federal and state taxes, achieving triple-digit year-over-year growth in e-files from organic search.

Her early career included work as a content marketer, vice president and managing officer of a boutique public relations agency, chief copy editor for 14 weekly Forbes publications, reporting for large and mid-sized daily newspapers, and freelancing for the Associated Press.

Evelyn is passionate about creating personal finance content that distills complex topics into relatable, easy-to-understand stories. She believes great content helps empower readers with the information they need to make important personal finance decisions.

Chris Schafer
Edited byChris SchaferDeputy Managing Editor, News and Marketing Content
Chris Schafer
Chris SchaferDeputy Managing Editor, News and Marketing Content
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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John Leach
Reviewed byJohn LeachSenior Insurance Copy Editor
Photo of an Insurify author
John LeachSenior Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 8+ years editing experience

  • NPN: 20461358

John leads Insurify’s copy desk, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

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