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Insurance Complaints Rise Despite Falling Rates

Insurify reported that Washington D.C. has the highest average full-coverage car insurance rates nationwide, but New Jersey had the highest rate increase last year at 20%.

February 10, 2026
Insurance Complaints Rise Despite Falling Rates

According to Insurify, the national average cost of full-coverage auto insurance in 2025 was $2,144. 

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2 min to read


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. 

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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.

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