Although car insurance rates trended upward throughout 2023 and into 2024, national averages remained unchanged through December, Insurify data shows. As of Dec. 31, 2024, full coverage cost an average of $193 per month — the same as in November. The national average for liability-only policies also held steady at $105 per month.
For the last six months of 2024, national average car insurance rates fluctuated only slightly. But some states experienced significant changes in average rates in December. Washington saw its full-coverage average soar by $49 per month, while the liability-only average for Washington, D.C., jumped $15.
Average cost of car insurance by state as of January 2025
Because location influences factors like exposure to extreme weather, traffic congestion, accident rates, and vehicle crime rates, where drivers live significantly affects their car insurance costs.
The cost of a full-coverage policy increased the most in Washington, D.C., rising to $283 (up from $252). Louisiana’s full-coverage rates fell the most of any state, edging down by $7 per month. Meanwhile, Kentucky had the largest decrease for liability-only coverage, with the average rate dropping by $17 in December.
Here are December 2024’s average full-coverage and liability-only rates by state, according to Insurify data.
5 states with the highest car insurance rates as of January 2025
New York had the highest overall cost of car insurance, averaging $282 per month. The Empire State also had the nation’s highest liability-only coverage rates at $247 per month.
Maryland had the costliest full coverage in December 2024, at $338 per month. The state’s full-coverage and liability-only averages are 75% and 99% higher than the national averages, respectively.
The following table shows the five places with the highest overall average car insurance rates in December 2024.
5 states with the lowest car insurance rates as of January 2025
While South Carolina is among the states with the highest average car insurance rates, neighboring North Carolina had the lowest overall average car insurance rate in December 2024 — $81. The Tarheel State’s average full-coverage rate was $106, and its liability-only average was $56.
The following table shows the states with the lowest overall average car insurance rates at the end of December.
Factors that affect car insurance rates
Car insurance rates can vary significantly among drivers based on many factors that insurers use to estimate risk. Some common rating factors include:
Driving history: Insurers consider whether a driver has a clean record or infractions such as speeding, driving under the influence, or causing an accident.Age: Driving experience and accident risks closely correlate with age, actuarial data shows.Gender: Statistically, women are less likely to cause accidents or engage in risky behaviors like aggressive driving.Location: Where a policyholder lives and drives affects their exposure to risk factors such as extreme weather, vehicle crime rates, and accident rates.Credit history: Actuarial data indicates drivers with better credit are less likely to file car insurance claims than those with poor credit.Vehicle make and model: Vehicles that are less expensive or have multiple safety features cost less to insure.Vehicle usage: Driving fewer miles per year reduces a vehicle’s exposure to the day-to-day risks of driving.Vehicle equipment: Safety features like lane-keeping assist and blind-spot warning can help decrease the risk of accidents.Coverage type: Generally, liability-only coverage costs less than full-coverage car insurance.Coverage limits: The amount of coverage you buy affects annual premiums; minimum coverage is typically the cheapest but doesn’t offer enough financial protection for most drivers.Deductible: A higher collision and comprehensive coverage deductible (liability coverage has no deductible) reduces rates since the insurer assumes less risk for the cost of repairs.
How to save on car insurance
Every state except New Hampshire requires drivers to carry at least a minimum amount of liability coverage. Insurance professionals recommend buying more coverage for greater financial protection in at-fault accidents. And if a driver leases or finances a vehicle, the leasing company or lender will require them to buy full-coverage car insurance.
Drivers can take steps to reduce the cost of car insurance, including:
Drive safely. Avoid speeding, hard braking, distracted driving, and other risky driving behaviors that could cause a claim.Look for discounts. Most insurers offer discounts, such as good student or multi-car discounts, that can help reduce premiums.Increase the deductible. A higher collision/comprehensive deductible typically leads to lower rates.Adjust coverages. Liability-only coverage is the cheapest insurance available, and minimum coverage is the cheapest liability option. But drivers should be careful and buy enough coverage to adequately protect them financially.Comparison shop. Drivers should compare rates from multiple companies every time their policy comes up for renewal.
Methodology
Insurify data scientists analyzed more than 97 million rates from car insurance applications in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. All premium averages reflect the cost of car insurance for drivers between the ages of 20 and 70 with a clean driving record and average or better credit.
For most states, full-coverage premium prices represent two-year rolling medians in order to manage extreme market volatility seen over the past few years as insurance companies have sought substantial rate increase approvals and deprioritized writing new policies in the face of rapidly rising costs.
Liability-only premium prices — as well as full-coverage prices in Maine, Massachusetts, Michigan, Montana, North Dakota, Nebraska, New Hampshire, New Jersey, and Vermont — represent one-year rolling medians.
Liability-only premium averages correspond to policies with the following coverage limits:
Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accidentProperty damage limits between $10,000 and $50,000No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
Comprehensive coverage with a $1,000 deductibleCollision coverage with a $1,000 deductible
For full-coverage historical data, please visit Insurify’s Auto Insurance Data Center. Data housed in the Data Center dates back to 2021 and represents the median yearly cost of full coverage for drivers between the ages of 20 and 70 with a clean driving record and average or better credit. Monthly prices are two-year rolling medians in order to manage extreme market volatility seen over the past few years as insurance companies have sought substantial rate increase approvals and deprioritized writing new policies in the face of rapidly rising costs.
Related articles
