The Auto Insurance Index
Average annual full-coverage auto insurance premium (U.S.)
Then
2019
$1,630/yr
Now
2025
$2,150/yr
Change
2019–2025
+32%
↑ Rising
The Auto Insurance Index: 2015–2025
Average annual full-coverage auto insurance premium (U.S.)
Source: Insurance Information Institute, Insurify, The Zebra
Historical Data
| Year | Price | YoY Change |
|---|---|---|
| 2015 | $1,440 | — |
| 2016 | $1,502 | +4.3% |
| 2017 | $1,555 | +3.5% |
| 2018 | $1,600 | +2.9% |
| 2019 | $1,630 | +1.9% |
| 2020 | $1,560 | -4.3% |
| 2021 | $1,620 | +3.8% |
| 2022 | $1,730 | +6.8% |
| 2023 | $1,950 | +12.7% |
| 2024 | $2,280 | +16.9% |
| 2025 | $2,150 | -5.7% |
Analysis
Auto insurance has been the single most inflated major consumer category since 2020, with cumulative increases exceeding 40% before a modest 6% pullback in 2025. The average full-coverage premium peaked near $2,280/year in 2024 — a 40% increase from 2019 levels.
The 2025 decline to roughly $2,150 represents a partial correction as claim frequency stabilized and insurers finished repricing their books. But "down from the peak" is relative — premiums remain roughly $500/year higher than pre-pandemic levels with no prospect of returning to 2019 pricing.
The structural drivers haven't changed: modern vehicles are packed with expensive sensors and cameras that cost $8,000-$15,000 to repair after a fender bender (versus $3,000-$5,000 for a 2015 model). Medical costs from accidents keep rising. Distracted driving has increased accident severity. And reinsurance costs — what insurance companies pay to insure themselves — have spiked due to climate-related catastrophe losses.
For the first time in decades, auto insurance costs are a genuine budget line item for middle-income households, rivaling utility bills in monthly impact.