U.S. Consumer Prices and Insurance

A new Insurify analysis, reported by Axios, finds the average annual full‑coverage car insurance premium in the U.S. fell 6% from 2024 to 2025 to $2,144, offering modest relief after rates had surged 46% between 2022 and 2024 amid post‑pandemic risky driving and higher repair costs. The drop is highly uneven: drivers in Wyoming, Iowa and Arkansas saw double‑digit declines of roughly 30%, 25% and 23% respectively, while premiums jumped 20% in New Jersey and 18% in Washington, D.C. Insurify says many insurers now have margins "high enough to absorb tariff‑driven costs" and are cutting rates to win and keep customers in a more competitive market. Looking ahead, the firm projects average full‑coverage premiums will tick up about 1% in 2026, but warns that ongoing U.S. tariff policy is a "potential wrinkle" that could affect vehicle and parts costs and, in turn, future premiums. For U.S. households already squeezed by higher food, housing and medical bills, the numbers show car insurance remains well above pre‑2022 levels even with last year’s dip, and that savings or new pain will depend heavily on where they live.