Full-Coverage Car Insurance Rates Will Climb By 4% On Average Through The End of 2025

by Tre Serrano

If you’re expecting a slowdown in vehicle insurance costs this year, new projections may shift that outlook. According to Insurify’s latest analysis, national average premiums for full-coverage car insurance are set to rise between 4% and 7% by year-end, driven by inflation and the lingering impact of tariffs.

Why This Matters

Early in 2025, car insurance rates held steady—or even declined in 27 states. Unfortunately, rising costs for auto parts and inflation are complicating the picture. As insurers grapple with increasing claim expenses, some are already preparing rate hikes to keep pace.

Without accounting for tariffs, national full-coverage premiums are expected to land at $2,402, a 4% increase over the year.
If tariffs continue impacting insurer costs, premiums could jump to $2,472, marking a 7% surge.

More Impacted States

Some states might see far steeper hikes:

Rhode Island, Michigan, Maine, D.C., and Delaware could face increases of 12% or more, potentially reaching 15% if tariffs bite harder.
Maryland, already the costliest state for drivers, might see averages approach $4,400.

What's Fueling the Increases?

Tariffs on auto parts are elevating repair costs, which insurers then pass on to policyholders.
Inflation and weather events, like vehicle damage from wildfires, storms, and other disasters, are also contributing to growth in claims.

What This Means for San Antonio Drivers

While this data is national, Texas isn’t immune to these trends:

Insurify projects a 4% premium increase in Texas by year-end without tariffs—up to 6% if tariff pressures persist.
That could push average annual full-coverage rates to nearly $3,000.

Even now, with inflation impacting repairs and coverage, combining home and auto insurance or increasing your deductible may offer some cost relief.

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