,Newsination) – Car Insurance Premium Skyrocketing In recent years, and President Donald Trump’s tariff Can drive them even more.
The cost of full-coverage car insurance can jump up to $ 7% per year by $ $ 2,472 by the end of 2025, if longer tariffs lead to significant insurers, according to a new Unprotected analysis,
Even without tariffs, drivers may expect an increase in the rate of 4% in the second half of the year, the insurance comparison site is estimated in its forecast.
In some states – such as Road Island, Michigan, Main and Delaware – Insurance costs can exceed 12% by the end of the year.
The latest estimates mark a rapid change from the first half of 2025, when car insurance rates were continuously held across the country and even fallen into 27 states, insured.
Now, Tariff on auto parts And inflation is threatening to derail positive tendency.
“The US has imposed several round tariffs that increase the cost of auto parts, thus increasing the cost of repair claims for insurers,” Insurance said. ,[Insurers] This can increase the premium to align your rates with additional financial risk. ,
If this happens, it will be another blow for drivers, whose annual insurance cost over 40% – $ 700 – from June 2022 to June 2024, according to Insurifey, exceeded about $ 700 -.
High labor costs, pricier parts, Technical vehicle And the extreme weather has promoted everyone.
Insurance Information Institute (Triple-I), Data from an industry business group, show, Auto claim seriousness – Average cost of a claim has increased in recent years. In 2023, the average auto liability for property damage claimed $ 6,551, in 2020 to about 40% from $ 4,689 to about 40%. According to Triple-I, a conflict was claimed over that period.
Nevertheless, tariff-inspired auto insurance hike is not guaranteed. Regulatory growth may push back, and some insurers may already include tariffs in their rates.
The part of uncertainty stems from the unexpectedness of the tariff. Trump recently announced deals with Japan, South Korea and European Union Reduce auto tariff From 25% to 15%.
According to AAA Latest 2024 StudiesThe total cost of operating a new vehicle for itself and operating is now $ 12,297 per year, or about $ 1,024 per month.
The most expensive states for car insurance in 2025
The analysis of INSURIFY found that inflation and insurer losses may increase the average rate in all four states by the end of 2025.
Maryland recently surpassed New York as the most expensive position for car insurance, with an average premium of $ 4,093 per year by June – from 2024 to 20% in summer, Insuriffy said.
New York ranks second, where the average annual cost is $ 3,724, followed by Delaware ($ 3,366) and Road Island ($ 3,331).
Florida, known for its harmful storms, is the most expensive state for auto insurers, but ranked 9th for drivers with an average annual premium of $ 2,912 in June – below the summit of $ 3,250 in August 2024, per insurance data per insurance data.
At the other end of the spectrum, the cheapest premium in New Hampshire is $ 993 per year. Wayoming ($ 1,172), North Dakota ($ 1,237) and North Carolina ($ 1,250) were also one of the cheapest states.
The average cost of full coverage car insurance in the US was $ 2,310 per year as per June.
10 states with the highest average annual car insurance premium by June 2025, Insured according to
- Maryland: $ 4,093
- New York: $ 3,724
- Delaware: $ 3,366
- Road Island: $ 3,331
- South Carolina: $ 3,202
- Nevada: $ 3,159
- Michigan: $ 3,131
- Georgia: $ 3,025
- Florida: $ 2,912
- Colorado: $ 2,801
Washington, DC, is second at $ 3,780, but was excluded because it is not a state.
