- Car insurance costs began dropping in January of this year.
- Several factors influence monthly costs.
- Using a variety of resources can help you find the best rates.
Auto insurance is a necessity that we pay for monthly. Thankfully, insurance prices are starting to come down. The cost of insurance varies widely, which is why we recommend that consumers review their rates at least once a year to ensure they are the best available.
According to a recent Insurify study, the average cost of full coverage auto insurance has dropped by roughly $6 since August 2025. Websites like Insurify compare rates from multiple auto insurance companies for all 50 states. That gives them extensive data on how costs are changing.
Insurance Costs
We’ve all seen the funny auto insurance ads, but budgeting for the monthly cost is no laughing matter. The technology in new cars, particularly radar sensors that power many safety systems, is expensive to replace. The more advanced the technology, the higher your insurance costs. Whether you are required to carry full coverage or liability-only can make a significant difference in how much you pay. Also, where you live, whether your vehicle is kept in a garage, your vehicle’s age, and so many other factors can impact your bottom line.
Choosing Insurance
For a deeper understanding, we recommend reading this article, “How to Estimate Car Insurance Costs Before Buying.” It will help you get a better idea of the factors that go into auto insurance options.
If you are looking to buy a new or used car, we recommend factoring in your auto insurance costs into your overall budget. Get quotes before you purchase a car, as insurance costs have risen high enough that they can make an otherwise affordable car out of your budget.
Shoppers might also want to check with their homeowners’ or renters’ insurance first; they may offer a bundle discount. Also, many auto insurers provide discounts for either installing a device in your car that monitors your driving habits or using an app to track your driving tendencies. These can potentially save you money.
