WASHINGTON STATE – Car insurance rates are set to increase by the end of 2025, but residents in Washington and Idaho might experience a smaller hike compared to other states. A new forecast indicates a rise of around 4% nationwide.
Insurify compiled this report by examining various data points, including tariffs, weather impacts, and crash information. Although factors vary by state and insurer, drivers have faced rising rates for years, particularly in the post-pandemic era.
Earlier this year, rates appeared to stabilize. However, the outlook for the remainder of the year depends on factors such as tariffs and inflation. “I think it’s still kind of a little nudge, a little warning that we might not be out of the woods totally yet,” Chase Gardner, a data insights manager with Insurify, said.
Washington experienced a 1% rate hike in the first half of the year, with a projected 4% increase for the rest of 2025. Idaho saw rates decrease by 6% initially, but they are expected to rise by 3% in the second half.
The White House imposed 25% tariffs on foreign cars and parts, with certain exemptions. Recently, agreements with Japan, South Korea, and European leaders have been made to reduce these rates.
