The 10 most expensive states for car insurance in 2025
Although rates were largely flat in the first half of the year, Insurify forecasts that inflation and insurer losses could cause average rates to rise by year’s end in all but four states. Tariffs add another wrinkle, adding costs for insurers that could prompt them to lift premiums.
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Many drivers already felt squeezed by high prices following two years of rapid rate hikes. An Insurify survey from May found that 38% of Americans consider car insurance unaffordable. Looking ahead, Northeastern states like Maryland and New York are likely to start 2026 with the highest car insurance rates in the country.
1. Maryland
Year-end annual cost projection, without tariffs: $4,235 (+4% year-over-year)
Year-end annual cost projection, with tariffs: $4,358 (+7% year-over-year)
Average annual cost (June 2025): $4,093
Second half of 2025 projected cost increase: 3% without tariffs
In mid-2024, Maryland surpassed New York as the most expensive state for car insurance premiums. In the past 12 months, Maryland’s premiums have jumped 20% while the U.S. average has declined by 1%. Much of that increase took place in late 2024 after the state began requiring insurers to provide enhanced underinsured motorist coverage for new policies.[8]
2. New York
Year-end annual cost projection, without tariffs: $3,935 (+4% year-over-year)
Year-end annual cost projection, with tariffs: $4,047 (+7% year-over-year)
Average annual cost (June 2025): $3,724
Second half of 2025 projected cost increase: 6% without tariffs
Car insurance rates rose rapidly in New York in the second half of 2024, before slowing in early 2025. The average cost peaked at $3,804 in December 2024, with rates dropping by 2% since. New York is a no-fault insurance state, meaning drivers have to pay for personal injury protection on top of liability coverage. No-fault states are also more susceptible to staged accidents and other forms of insurance fraud, which increases insurer losses and drives up premiums.
3. Washington, D.C.
Year-end annual cost projection, without tariffs: $3,848 (+13% year-over-year)
Year-end annual cost projection, with tariffs: $3,961 (+16% year-over-year)
Average annual cost (June 2025): $3,780
Second half of 2025 projected cost increase: 2% without tariffs
Car insurance rates in D.C. have soared 27% over the past 12 months, more than any state over that period. The average cost of car insurance in D.C. last summer was $2,984 per year. Since then, it’s gone up by about $800, and Insurify expects the average to reach about $4,000 by year’s end.
Frequent vehicle thefts tend to raise car insurance premiums, and the capital has higher vehicle theft rates than any state. In D.C., the vehicle theft rate was 842.4 per 100,000 people in 2024 — nearly double the next entry on the list.[9]
In the first half of 2025, D.C. rates climbed 11%. Only three states saw larger increases. Insurify projects an additional 2% increase by year’s end.
4. Delaware
Year-end annual cost projection, without tariffs: $3,465 (+12% year-over-year)
Year-end annual cost projection, with tariffs: $3,566 (+15% year-over-year)
Average annual cost (June 2025): $3,366
Second half of 2025 projected cost increase: 3% without tariffs
Delaware’s car insurance costs rose 9% in the first six months of 2025. Without tariffs, Insurify projects those costs would level off later in the year, rising about 3% from now until December. But tariffs could double that increase to 6%, raising the average annual cost an additional $101.
Delaware’s rates are already higher than the national average. It has one of the five highest insurer loss ratios in the country.[10] The state doesn’t limit the amount of pain and suffering damages a plaintiff can seek in an accident case, which can increase insurer losses and influence rates.[11]
5. South Carolina
Year-end annual cost projection, without tariffs: $3,362 (-1% year-over-year)
Year-end annual cost projection, with tariffs: $3,458 (+2% year-over-year)
Average annual cost (June 2025): $3,202
Second half of 2025 projected cost increase: 5% without tariffs
South Carolina is one of the most expensive states for drivers because insurers there absorb above-average losses. The state has the third-highest rate of vehicle fatalities per mile driven.[12] Heightened hurricane and flood risks also cause insurers to pay out additional claims, which they may try to recover through higher premiums.
The average cost of car insurance in South Carolina peaked at nearly $3,500 in late 2024, but it has come down to $3,202 since then. That trend may reverse in the second half of the year if tariff-related price increases take hold.
6. Rhode Island
Year-end annual cost projection, without tariffs: $3,330 (+17% year-over-year)
Year-end annual cost projection, with tariffs: $3,430 (+20% year-over-year)
Average annual cost (June 2025): $3,331
Second half of 2025 projected cost increase: 0% without tariffs
Auto insurance rates in Rhode Island have been noticeably volatile lately. The average cost of car insurance rose 17% in the first half of 2025 — the largest increase of any state — from $2,839 to $3,331. That followed a 37% increase in fatal crashes from 2022 to 2023.[13]
Insurify expects rates to stay flat in the second half of the year, unless tariffs lead insurers to request approval from regulators for further premium increases.
7. Nevada
Year-end annual cost projection, without tariffs: $3,275 (+10% year-over-year)
Year-end annual cost projection, with tariffs: $3,369 (+13% year-over-year)
Average annual cost (June 2025): $3,159
Second half of 2025 projected cost increase: 4% without tariffs
Nevada saw average car insurance rates rise 6% in the first half of 2025 and is likely to see further cost increases as the year continues. Nevada has the fourth-highest loss ratio of any state, as auto insurers pay out about $72 in claims for every $100 they make in premiums. A healthy loss ratio typically falls between $40 and $60 in claims for every $100 made in premiums. Vehicle theft claims can increase insurance costs, and Nevada ranks fifth nationwide with 394 thefts per 100,000 people.[9]
8. Michigan
Year-end annual cost projection, without tariffs: $3,186 (+16% year-over-year)
Year-end annual cost projection, with tariffs: $3,280 (+19% year-over-year)
Average annual cost (June 2025): $3,131
Second half of 2025 projected cost increase: 2% without tariffs
The average annual cost of car insurance in Michigan rose 14% in the first half of 2025 — the second-biggest jump of any state — from $2,742 to $3,131. Michigan is a no-fault state, meaning drivers carry additional protection to pay for their own medical expenses in the event of a collision, which often leads to higher insurance rates. Additionally, Michigan auto insurers have the eighth-highest loss ratio of any state, paying out about $70 in claims for every $100 they make in premiums.
9. Georgia
Year-end annual cost projection, without tariffs: $3,133 (+11% year-over-year)
Year-end annual cost projection, with tariffs: $3,224 (+14% year-over-year)
Average annual cost (June 2025): $3,025
Second half of 2025 projected cost increase: 4% without tariffs
Georgia car insurance costs exceed the national average by about $700 per year. The state has one of the highest estimated rates of uninsured motorists, which can increase risk and raise premiums for drivers with coverage.[14] Insurance rates in the state rose 8% in the first half of 2025, and Insurify projects a 4% increase for the second half of the year. Though that projection could go up to 7% depending on how insurers deal with tariffs.
10. Florida
Year-end annual cost projection, without tariffs: $3,107 (-1% year-over-year)
Year-end annual cost projection, with tariffs: $3,194 (+2% year-over-year)
Average annual cost (June 2025): $2,912
Second half of 2025 projected cost increase: 7% without tariffs
Florida car insurance rates peaked in August 2024 at $3,250 on average. But premiums have retreated by more than $300 since then. Despite prices cooling down, Insurify projects rates will go up in the second half of 2025. Florida is the most expensive state for auto insurers, with the nation’s highest loss ratio. Insurers pay out about $74.50 in claims for every $100 they make in premiums.
Some Florida drivers have noticed higher premiums, prompting them to lower their coverage to save on costs.
“As a result of high insurance rates in Florida, we’re seeing drivers who used to carry more robust coverage with high limits starting to reduce their coverage, switching to cheaper policies with lower limits,” said Mallory Mooney, director of sales and service at Insurify.
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