U.S. Car Insurance Rates Drop 6%, Nevada Remains Among Most Expensive

Car insurance premiums across the U.S. dropped by 6% in 2025, lowering the national average annual cost to $2,144. This provided much-needed relief for drivers after several years of sharp increases, with rates falling in 39 states and some seeing reductions of 15% or more.

Nevada, however, bucked the national trend. The state's average full-coverage car insurance premium remained virtually unchanged, rising by just $7 to end 2025 at $2,897 per year. This places Nevada as the 10th most expensive state for full-coverage insurance, well above the national average.

Several unique factors continued to exert upward pressure on costs in the state. Nevada ranks as the second most urbanized in the country, resulting in heavier traffic and elevated collision risks in densely populated areas such as Las Vegas and Reno. The state also has the third-highest vehicle theft rate in the nation, trailing only Washington, D.C., and California. In addition, Nevada ranks fifth for DUI arrest rates, which leads to more frequent and costly claims. Together, these elements kept premiums elevated even as they decreased in most other states.

Nationally, experts project a modest 1% increase in the average annual full-coverage car insurance premium for 2026, bringing the national average to approximately $2,158 by year's end.