12 States Facing Double-Digit Car Insurance Hikes by End of 2025 – Tariffs Escalating Costs | Insurify

Full-coverage car insurance rates are rising across the country, and some states are facing daunting double-digit increases, according to Insurify's latest car insurance report.

Factoring in the impact of tariffs, 12 states will see steep year-over-year increases of 10% or more. Removing tariffs from the equation would drop the number of states facing double-digit rate increases to seven.

"During the first half of the year, we saw some rate stability and even decreases in certain states," study author Matt Brannon said. "But it appears that trend will reverse in the second half of 2025, and some states will feel the pain more than others."

Rhode Island's jump in fatalities lands it at top of list

Rhode Island's full-coverage car insurance premiums have historically been high compared to larger states. For example, at the end of 2024, the state's annual average cost of full-coverage car insurance was $2,855, while nearby Connecticut saw an average of $2,438.

Although the state's population is small, its number of road fatalities soared 37% in 2023, according to National Highway Traffic Safety Administration data. And drivers in its most populous city, Providence, lose roughly 51 hours per year sitting in rush hour traffic, according to GPS company TomTom.

Accident rates and traffic congestion affect auto insurance rates in an area.

Michigan is likely to see the second-greatest increase by the end of 2025, Insurify predicts. Factoring in the impact of tariffs, Michigan's auto insurance rates could increase by 19%. And residents of Washington, D.C., and Maine could be looking at 16% increases by the end of the year.

Rates likely to rise more with tariffs

Uncertainty around tariffs is likely to continue affecting car insurance rates, according to Insurify's report. If insurers decide tariffs will threaten their margins, they'll likely increase their rates in response, Brannon said.

"Insurers have said tariffs could lead to higher-than-expected rate increases, but we predict rates will continue to rise regardless of what happens with tariffs," he said.

What's next: How drivers can save on car insurance

Many factors affect car insurance premiums, including market influences like inflation and tariffs. But the most impactful factors tend to be specific to individual drivers, Brannon said.

"Your driving history is the most important factor in determining your car insurance costs," he said. Driving safely and maintaining a clean record could help you qualify for the lowest rates.

Additionally, drivers can consider increasing their collision and comprehensive deductibles. Drivers with paid-off vehicles can consider reducing coverage to just liability — but they'll have to shoulder the cost of repairing or replacing their vehicles if they cause an accident.

Finally, it's a good idea to compare quotes from multiple insurers every six months, Brannon said.

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