The average cost of full coverage car insurance in the U.S. is 12% higher in 2025, according to Bankrate.
At $2,638 per year or roughly $220 each month, U.S. consumers will spend an extra $289 in 2025 or $24 every month when compared to 2024. The typical household now spends 3.39% of their annual income on auto coverage.
According to the U.S. Census Bureau, the national median household income is $77,719.
“A driver who had an accident last year may have seen a steeper rate increase at renewal, while someone who moved to a new ZIP code or reduced their mileage may have seen a rate decrease,” Bankrate said in the report. “The true cost of car insurance is calculated by dividing the average annual full coverage car insurance premium by the median annual income for each state and MSA.”
Other key takeaways from Bankrate…
- The national average cost of full coverage car insurance for a driver with poor credit is $4,644 annually — $2,006 more than drivers with good credit.
- Florida drivers with poor credit pay $8,254 per year for full coverage car insurance, the highest rate of any state. Among states that allow credit as a rating factor, Idaho drivers with poor credit pay the least of any state at $2,158 per year.
- South Dakota has the highest relative gap in average rates for drivers based on credit history. Drivers with poor credit pay 148% more for auto insurance than their counterparts with good credit.
- North Carolina is the most forgiving in terms of insurance credit rating. Drivers with poor credit pay an average of $2,845, only 39% more than drivers with good credit for the same level of coverage.
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