WASHINGTON – Washington drivers are facing another increase in auto insurance rates in 2025. According to ValuePenguin.com’s State of Auto Insurance 2025, rates are projected to rise by 17.2%, following a more than 20% increase in 2024. This ties Washington with New Jersey for the largest auto insurance hikes in the nation.
Divya Sangameshwar, an insurance expert at ValuePenguin, noted the impact of inflation on car-related expenses. “Inflation has impacted us in ways we may not fully understand and one of those is how much more expensive it has gotten to repair cars, to buy cars,” she said.
The U.S. Consumer Price Index reports that auto repairs now cost 28% more than three years ago, contributing to the insurance price spike. Sangameshwar described the situation as “back-to-back sticker shock if you’re a driver in Washington.”
Aaron VanTuyl from the Washington State Office of the Insurance Commissioner commented on the situation. “Nobody is ever happy about paying their car insurance we know that,” he said. Despite the increases, VanTuyl noted that Washingtonians are still better off than many other states. “On that same report for what it costs to insure a car in Washington it looks better than two-thirds of the country,” he added.
The average American pays $2,101 annually for insurance, which is 7% more than in Washington. A standard Washington driver pays $1,500 less than a Nevada driver, who have the highest rates in the country. “Overall, we’re still in better shape from a consumer standpoint than the rest of the country as far as our auto insurance market goes,” VanTuyl stated.
To manage rising costs, Sangameshwar suggests comparison shopping. “You’ll find that across the largest insurance providers in Washington, you’ll find 121 percent price difference for the same driver,” she said. She also recommends exploring pay-per-mile insurance or low mileage discounts for those driving less than 2,000 miles a year.
Driver behavior is another factor affecting insurance costs. A single traffic ticket can increase insurance costs by about $500 annually. Sangameshwar advises drivers to communicate with their insurance providers about first-time tickets or taking defensive driving courses for potential discounts.
For those committed to safe driving, driver safety tracking can offer substantial discounts. “It’ll track your driving habits but once you have it you have to commit to driving safe because it’ll know if your lead-footed or if you’re changing lanes,” Sangameshwar explained.
While Sangameshwar believes the rate increases may not continue at the same pace, potential tariffs could further affect auto repair costs and insurance rates.
For those considering low mileage discounts, the cost of public transit in Spokane is a factor. The monthly cap for bus riders is $60, totaling $720 annually. However, this is per rider, so costs can increase for households with multiple riders. Reduced driving could also lower annual fuel and maintenance costs, balancing the cost of public transit against potential insurance savings.
