Car insurance fell 6% in 2025, but many drivers skip shopping

Auto-renewal is convenient, but it can quietly cost drivers hundreds of dollars a year in car insurance.

US car insurance prices fell 6% in 2025 to an average of $2,144 a year, yet nearly half of drivers still skip comparison shopping at renewal. The auto-renewal checkbox is just as convenient for insurers, which is exactly why staying put can be expensive.

According to a J.D. Power study, 53% of customers comparison shopped their auto policy in the past year, leaving nearly half who did not. An analysis of the 2025 market found the relief was wildly uneven — costs are heading up in 35 states and down in 15.

Florida sits among the most expensive states, with a no-fault system requiring personal injury protection, heavy hurricane exposure, dense traffic and one of the highest shares of uninsured drivers anywhere. Texas, Arizona and Georgia have the weather to blame: hail, monsoon flooding and violent spring storms can result in comprehensive claims, which are reflected in premiums for everyone. Virginia drivers carry the cost of the crowded northern Virginia commute and the rising price of repairing modern cars. Illinois runs below the national average, although parking in Chicago — with its dense traffic and vehicle theft — narrows that advantage in a hurry.

Each insurer weighs your age, ZIP code, credit, car and driving record using its own formula, so the same coverage for the same driver can carry very different prices from one company to the next. Two drivers with identical records and identical cars can pay very different prices simply because of the state on their license.

Why state matters

Insurers price a region based on specific risks: how busy the roads are, how often cars get stolen, what the weather does, how many drivers carry no coverage at all, and what each state requires you to buy in the first place. These differences change year-on-year, which is why you should compare car insurance at least every year at or before renewal.

When to shop

Compare at least three carriers, and make sure every quote uses the same liability limits and deductibles. Do it at renewal, and again any time your life circumstances change: a move, a paid-off car, a new driver on the policy, a milestone birthday. Technology means it is easier and faster than it used to be, and failing to do this may mean leaving easy savings on the table.

The 6% national decline masks wide state-level divergence, so the savings available to any single driver depend heavily on where they live and which carriers they compare. With prices still rising in 35 states, the next renewal notice is the moment to check whether a lower quote exists. Figures cited reflect the 2025 market analysis and J.D. Power study; verify current rates against the latest official insurer quotes.

This article is for informational purposes only and does not constitute professional advice.