The rate of U.S. policyholders who are unhappy with their insurance coverage rose in 2025. Even as average car insurance rates decreased by 6%, consumers filed 7% more complaints than in 2024, Insurify reported, citing data gathered by the National Association of Insurance Commissioners.
According to Insurify, the national average cost of full-coverage auto insurance was $2,144. Despite rates being down year-over-year, that's still up 39% from 2021 levels. The report explained that auto insurance spiked between 2022 and 2024, in part because of risky driving behavior following the Covid pandemic.
Thanks to those elevated premiums, insurers gained enough financial footing to absorb tariff-driven costs without raising their prices, leading many to cut rates now, Insurify said. But rates vary across states, showing a widening affordability gap as more expensive states’ rates rise and more affordable states’ rates fall.
Washington D.C. had the highest average full-coverage car insurance rates nationwide, but New Jersey had the highest rate increase at 20%.
The downward rates trend continued across brands as the 50 most-quoted vehicles in Insurify’s proprietary data had insurance rate drops except for Tesla models S and X. And eight out of nine of the most common manufacturers saw average rates on popular models fall.
Looking ahead, Insurify projects a 1% increase in average full-coverage premiums this year based on loss projections and the current rate environment.