Auto insurance rates in the US have increased by 84% over the past 5 years. That's the biggest 5-year spike on record.https://t.co/l5IYmkeySJ pic.twitter.com/8oALpnRJEQ
— Charlie Bilello (@charliebilello) June 16, 2025
The average American now pays $2,165 a year for full coverage. That’s up from $1,176 in 2019. Minimum coverage climbed too, now averaging $596. These are not luxury policies. These are the bare minimums. And they are gutting paychecks.
State-level pain is worse. California drivers are seeing renewal spikes of 54%. Minnesota is clocking in at 61%. Missouri? 55%. These are not outliers. These are the new normal. And the reasons are stacking.
Repair costs are up. Labor is tight. Car parts are stuck in backlogs. Supply chains are still limping. Add in the rise in vehicle thefts and weather damage and insurers are not just raising rates. They are rewriting the rules.
Lawsuits are another weight. Legal costs are baked into every policy. Settlements are bigger. Payouts are faster. And the carriers are not absorbing the hit. They are passing it on. Line by line. Premium by premium.
The average cost of a new car is now $48,401. That’s the sticker. The insurance is the shadow price. And it is growing faster than the car itself. Drivers are not just paying more to buy. They are paying more to keep.
Sources
https://www.in2013dollars.com/Motor-vehicle-insurance/price-inflation
https://smartfinancial.com/state-of-car-insurance
https://www.forbes.com/advisor/car-insurance/best-car-insurance-companies/