The 5 Most Expensive States for Car Insurance in 2025 originally appeared on Autoblog.
How national trends are shaping state-by-state premiums
The cost of car insurance rose 42% from $1,633 to $2,313 between 2022 and 2024, and drivers can expect more increases during 2025. Insurify projected that U.S. drivers would incur an overall average car insurance premium increase of 5% (to $2,435), with some states worse off than others. Florida and New York are anticipated to see the highest rise of 10%. Georgia and Nevada follow with an 8% forecasted increase, while Delaware may see a 7% hike. Maryland drivers currently pay the highest average full-coverage premium of $4,060. Last year, Maryland auto insurance costs went up by 53%, with a recent surge in stolen vehicle claims possibly contributing. Maryland experienced a 63% increase in car thefts from 2022 to 2023. Other factors contributing to Maryland’s steep auto insurance costs include the state requiring providers to supply enhanced underinsured motorist coverage, or more thorough protection if a driver is injured by another motorist with insurance that’s unable to cover all damages.
New York has the second-highest car insurance costs in 2025, averaging $3,804. While New York’s premiums are expected to rise this year, they may decrease after the 2024 Auto Insurance Consumer Relief Act waived a prior requirement forcing insurers to revoke coverage for drivers who didn’t meet the 14-day requirement to submit vehicle photos after purchasing a new full-coverage policy. Fewer drivers getting their insurance revoked naturally decreases the amount of uninsured motorists on roads, one of the most significant factors impacting premiums.
Washington, D.C., comes in third place in 2025 with an average annual amount of $3,399. A high population density and a vehicle theft rate three times the national average contribute to Washington, D.C.’s rank. The district’s car theft rate increased by 64% in 2023. South Carolina follows Washington D.C. with an average annual full coverage cost of $3,393. This figure is influenced by the state having the highest number of traffic fatalities per mile traveled of 1.85 per 100 million miles, well above the national average of 1.33, along with more frequent and intense destructive weather. Florida’s fifth-place spot translates to a $3,166 average annual premium stemming from cascading effects of the state’s struggling home insurance market and providers needing to pay personal injury protection claims regardless of who’s at fault for an accident.
The impact of EVs and tariffs on car insurance
Electric vehicle (EV) drivers won’t like hearing how insurance for nine popular models rose by 28% in 2024, twice the rate of comparable gas-powered cars. EVs are now 23% more expensive to insure than their internal combustion engine (ICE) counterparts at $3,430 annually. Additionally, tariffs on imports of vehicles and parts have the potential to increase auto insurance premiums since they affect car values and repair costs, two foundational elements determining customer payouts. However, the American Property Casualty Insurance Association predicts that consumers won’t notice a difference in coverage costs in 2025. More specifically, the association expects that tariffs won’t impact insurance until at least 12-18 months after President Trump authorized them in March, AP reports.
Final thoughts
Varying auto insurance costs in different states show how factors like legislation, crime rates, weather, population density, and more can affect what drivers pay. Additionally, EVs generally cost more to insure, and while rate increases are expected to slow this year, tariff ripple effects could cause faster premium hikes during 2026, 2027, and 2028. Still, auto insurers’ investments in AI could improve accuracy and loss severity to mitigate these possible expenses.
The 5 Most Expensive States for Car Insurance in 2025 first appeared on Autoblog on Jul 31, 2025
This story was originally reported by Autoblog on Jul 31, 2025, where it first appeared.
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