Auto insurance market finally turns in consumers’ favor
After two years of relentless premium hikes, 2025 is shaping up to be a turning point. The Jerry Auto Insurance Premium Index (JAPI) — a monthly benchmark built on verified quotes from 50+ auto insurers — shows that car insurance prices fell 6.2% between January and June 2025, reaching an early-year low of $2,880 in May for full coverage policies. While June saw a modest 1.2% rebound, premiums remained well below where they started this year.
This shift is driven by two key dynamics: New insurers are entering the market and existing insurers are lowering their pricing, either because they’re seeing fewer losses than in prior years or because they are trying to stay competitive. Together, these forces are restoring a healthier, more competitive marketplace — one where prices stabilize, consumer choice expands and affordability improves.
Reflecting the broader national trend, many key states also recorded drops in June.
Notably:
- California saw a 1.3% month-over-month drop in June and is down 7.8% compared to its January average.
- Quoted premiums in Florida held steady in June, following a 14.6% drop in May — reinforcing the broader correction that began earlier this year.
- Other large declines from May to June include Maryland (6.8%), Tennessee (5.4%), New Jersey (2.6%), and Missouri (2.3%).
“After two years of rate uncertainty, we’re seeing insurers recalibrate,” said Josh Damico, VP of Insurance Operations at Jerry. “Many are making product adjustments to improve their competitive position. For drivers, this signals progress towards stabilization.”
While prices appeared to level off in May and June, the relief may be short-lived. With shifting trade policies and potential new tariffs on vehicles and parts, the cost of repairs could rise — and with it, future insurance rates.
More: Jerry’s car tariffs price estimator
Not all states followed the same trajectory: Texas premiums rose a modest 2% in June, continuing a steady increase since January. However, some indicators show insurers are beginning to lower their rates in Texas, suggesting softer pricing may be coming for states that show overall increases.
South Carolina, after sharp declines earlier this year, saw a 3% uptick in June, but remained below January levels, and Ohio saw a 1% increase.
DisclaimerThe Jerry Auto Insurance Premium Index is based on verified quotes, but actual insurance pricing may vary based on personal factors such as driving history, vehicle type, location and individual underwriting criteria.
About the Jerry Auto Insurance Premium Index:
The Jerry Auto Insurance Premium Index (JAPI) is a longitudinal benchmark designed to track trends in quoted auto insurance premiums across U.S. states. It reflects premiums offered to drivers with comparable risk characteristics — specifically, clean driving records and credit scores above 550 — providing directional insight into pricing dynamics and regional variation over time.
JAPI is particularly useful for observing:
- Monthly shifts in insurance affordability.
- Pricing variation across states for similar user profiles.
- Changes in market competitiveness.
Most insurance data out there is based on what companies plan to charge — not what drivers are actually quoted. JAPI is built from real quotes that real people receive every month, so it shows what’s really happening in the market right now. JAPI provides a real-time, granular view of price dynamics that complements the consumer price index’s broader inflation trends.
Methodology:
The Jerry Auto Insurance Premium Index (JAPI) is built on verified quotes sourced directly from insurers responding to real users in the last six months. The index reflects pricing across 50+ carrier partners, including many of the largest national and regional insurers, offering a high-resolution view into real-time market dynamics.
To ensure accurate and comparable insights across time and geography, we filter for a consistent underwriting profile: Drivers with clean records, credit scores above 550, with full coverage corresponding to bodily injury limits of bodily injury liability limits of $50,000 per person and $100,000 per accident and comprehensive and collision deductibles of $1,000. Quotes are grouped by state and month, and we report the median premium — providing a clear, comparable view of pricing trends over time and across geographies. To ensure data quality, we remove quotes that fall more than two standard deviations above or below the mean in each state-month pair, eliminating outliers that could distort trends.
This release includes data from 16 states, which includes those with a large enough sample size to ensure that meaningful insights are reported.
Want to embed JAPI insights in your reporting? Need custom charts or quotes?
Contact our communications team at manahil.munim@jerry.ai.
Sinduja Rangarajan is an award-winning journalist whose reporting has informed public understanding and driven meaningful change. Her most recent role was as a senior data reporter at Bloomberg News, where her work received multiple honors, including recognition as a Pulitzer Prize finalist for her contributions to the “water grab” series in 2024.
Before joining Bloomberg, she served as a data and interactives editor at Mother Jones and as a data reporter at Reveal from The Center for Investigative Reporting. She holds two master’s degrees in communications and journalism, as well as a bachelor’s degree in computer science. She lives in the San Francisco Bay Area with her partner and two children.
Annie is a writer and editor at Jerry with more than a decade of experience writing and editing digital content. Before joining Jerry, she was an assistant assigning editor at NerdWallet. Her past work has appeared in the Associated Press, USA Today and The Washington Post. Her work has been cited by NorthWestern University and Harvard Kennedy School. Annie served as a spokesperson for NerdWallet during her time at NerdWallet and has been featured in New York Magazine, MarketWatch and on local television and radio stations.
Previously, she worked at USAA and newspapers in Minnesota, North Dakota, California and Texas. She has a bachelor’s degree in journalism from the University of Minnesota.
