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USA Today
28-05-2025
- Automotive
- USA Today
What states have the highest, lowest auto insurance rates?
What states have the highest, lowest auto insurance rates? Show Caption Hide Caption How to save money on car insurance This app can help save you money on car insurance. ProblemSolved, USA TODAY The average auto insurance rate in the U.S. is expected to go up by 7.5% in 2025, according to a new analysis by MarketWatch Guides. The hikes will add an average $182 to the average annual full-coverage premium nationwide raising it to $2,615 from $2,433. Drivers in several states face increases of $200 or more. With the average American worker making $68,000, auto insurance will consume nearly 3.9% of annual income and significantly more in states with lower median incomes, MarketWatch Guides said. MarketWatch Guides calculated average auto insurance rates using data from Quadrant Information Services for a 35-year-old single driver with a clean driving record and good credit who drives a 2023 Toyota Camry. Why are auto insurance premiums going up? The auto insurance industry faced headwinds a few years ago in 2022 and 2023, said Daniel Robinson, senior auto insurance research and writer at MarketWatch Guides. There was increased frequency and severity of natural disasters, like floods, wildfires, and hurricanes, he said. "These disasters led to higher-than-expected claims, straining insurers' bottom lines," Robinson told USA TODAY. Insurance premiums have been on a steady climb since dramatic pandemic-era disruptions spurred rate hikes, but have slowed to smaller increases, he said. A shortage of vehicle parts and skilled auto repair workers that emerged during the pandemic era when there were supply chain snarls still plays a role in increased repair costs today, Robinson said. Insurers unfortunately took the brunt of those repair costs, which required them to raise premiums to stay financially stable. "We've also seen prices of cars in general rise in recent years due to inflation and increased demand. This adds another compounding effect," he said. Tariffs, which have led to an increase in the cost of imported car parts, also make repairing cars more expensive and are passed on in higher insurance premiums, Robinson said. What states have the highest auto premiums? Drivers in Louisiana pay the most, with an average of $3,481 per year or $290 a month for a full-coverage policy. Louisiana also has one of the highest rates of highway fatalities, with 19.7 deaths per 100,000 residents, according to an Insurance Institute for Highway Safety analysis of data from the U.S. Department of Transportation's Fatality Analysis Reporting System. The national average is 12.8 deaths per 100,000 residents. Vermont drivers have the lowest average premium at $1,624 per year on average or $135 a month. The state has a below-average rate of highway fatalities at 11.7 deaths per 100,000 residents, according to MarketWatch Guides. More money: Add auto insurance to the list of things increasing in price with Trump's tariffs Where is car insurance increasing the most? MarketWatch Guides' analysis found the most dramatic insurance premium price hike was in Washington, D.C., where premiums rose by 20% from $2,684 to $3,209. Maine and South Carolina also saw big increases of 10%. In South Carolina, a 10% raise in premiums is $221 more in costs per year, the second-highest dollar amount increase after Washington, D.C. ($525). Nevada had the biggest decreases in premiums. Nevada's average premium fell from $3,549 to $2,889. That's a 19% decrease and a $660 difference. Even though Louisiana is the most expensive state for auto premiums, it had the second-highest decrease in annual premiums in terms of dollar amounts and as a percentage. Premiums in Louisiana fell by 14% in 2025 or $576. Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@ or follow her on X, Facebook or Instagram @blinfisher and @ on Bluesky. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.
Miami Herald
10-05-2025
- Automotive
- Miami Herald
Car buyers notice a disturbing trend at the car lot
Car ownership is seen as less of a privilege and more of a necessity in America. Thanks to decades of building cities to accommodate private vehicles, the only efficient way to travel in most places in this country is to drive. Don't miss the move: Subscribe to TheStreet's free daily newsletter New York City, Washington D.C., and Boston are some of only a handful of American cities that are actually walkable. Other major cities like Los Angeles, Houston, and Atlanta make walking or cycling nearly impossible. In those cities and most rural towns, having a vehicle is non-negotiable. But while vehicles are needed, they are becoming increasingly unaffordable for most Americans. Statistics show that Americans will prioritize owning a vehicle over paying other expenses. Related: Ford announces desperate move to battle tariffs Nearly half of American drivers cite car expenses as the reason they can't save any money, and the average American spends about 20% of their monthly income on auto loans, fuel, insurance, and maintenance. Most financial experts cap the monthly income you should spend on a vehicle at 15%. According to a MarketWatch Guides survey, about 10% of drivers say they spend 30% of their monthly income on driving, while another 12% said they "found themselves living paycheck to paycheck due to the financial strain of their cars." With car prices expected to climb in the coming months thanks to tariffs, and unemployment also expected to rise for the same reason, car buyers are being cautious about their next purchases. Unfortunately, the latest data will not reverse this trend. Image source: Getty Images President Donald Trump has made his love of tariffs known for months, so some industries have been planning for the current environment. Changes to monetary policy led consumers on a buying spree earlier this year. "Consumers jumped initially to buy ahead of tariffs, driving prices higher. Now vehicle supply is tighter, prices are rising, and incentives are falling," Cox Automotive said in a recent report. However, now that the tariffs have officially landed, car buyers are waiting to see what the Federal Reserve does with interest rates before they make their next purchase. Related: Tesla rival makes huge announcement about what's coming in 2026 Dealer incentives are down, vehicle prices are up, and auto loan rates are just 36 basis points below the 25-year high reached last year. On Wednesday, the Fed left interest rates at their current levels. The central bank expects tariffs to drive inflation by at least a full percentage point, and while employment has held strong, that could also change as the economy feels the effects of the trade war. "We are expecting volatility this summer in rates, prices, and sales. When rates and prices move higher, sales are likely to fall," the report said. "Chair Powell said today that the Committee doesn't have to be in a hurry. It's likely that car buyers will be taking a similar approach as well." Car buyers must consider several factors before making a purchase. Of course, the vehicle itself is only part of the expense, as it will need insurance, maintenance, and gas to run. More Automotive news: Ford announces desperate move to battle tariffsAmerican car company takes drastic action in response to tariffsCar buyers rejoice - you just got great news about tariffs In addition to capping your car payments at about 15% of your monthly take-home, financial experts also recommend shoppers aim for a 20% down payment, a 36 to 48-month loan term, and expenses (including insurance) at between 8% and 10% of your gross monthly income. Experts also recommend that you know your credit score and loan approval amount in advance and that you shop around with different lenders for the best rate. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
26-04-2025
- Business
- Yahoo
What If Your Groceries Doubled in Price?
There is no easy way around the fact that everything is getting more expensive these days, especially groceries. With the global economy fluctuating up and down and no ease in sight, consumers are left to foot the bill, which has often become twice as much money for them, if not more. Consider This: Read More: If you are seeing your groceries prices double, here are some tips from experts on what to do. 'One of the shopping mistakes many make that ends up doubling their grocery bills is they ignore generic brands and opt for name brands instead,' highlighted Aaron Razon, a personal finance expert at Couponsnake. It was noted that this is usually because generic brands are deemed to be inferior in quality, which is why they have lower prices. 'However, many generic and store-brand products often offer similar quality, but at a lower price point, and this makes them a cost-effective alternative that can significantly slash your grocery bills without compromising taste or nutrition,' Razon shared. By considering generic or store brand products, Razon pointed out how the average consumer would be able to make their grocery shopping more budget-friendly, and have a couple of extra dollars to allocate toward other essential items. Be Aware: Look at your weekly grocery haul and see what 'splurges' you can cut back on. Instead, focus only on what you need, said Laurie Sepulveda, a personal finance expert at MarketWatch Guides. Sepulveda cited data in a new MarketWatch Guides survey that found 43% of Americans are avoiding splurging on treats and prestige-priced goods, making this the most popular strategy. 'Fancy prepared foods can eat away a big chunk of your grocery budget,' Sepulveda described. 'Many times, you can recreate splurges at home for a lot less.' According to Razon, another thing consumers can do if they find that their grocery bill doubling is to avoid processed and pre-prepared foods because they are more expensive than whole ingredients. In fact, by choosing whole foods like vegetables, fruits and grains, consumers would be saving money and benefitting from the superior nutritional value these foods provide. This might add some extra stops and the hassle of going multiple places to get your full grocery list, but Chris Motola, the National Business Capital Special Projects Editor and Financial Analyst, explained it could help lower your bill. 'Supermarkets and many other types of businesses will have a loss leader at any given time,' Motola went on to say. 'That is, a product that's being sold cheaper than cost. The idea here is that the product attracts customers to the store who will then also spend money on more profitable products. Strategically buying loss leaders and limiting spending on other products during your shopping run can help keep your grocery bill down.' Motola suggested consumers should be willing to shop at multiple stores. 'Different stores will have different sales and loss leaders at any given time,' it was noted. 'It takes some planning and a little more time, but if you live in an area with a healthy amount of supermarket competition, you can save money by strategically buying items on sale at each,' added Motola. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 4 Things You Should Do if You Want To Retire Early How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on What If Your Groceries Doubled in Price? Sign in to access your portfolio
