A recent analysis by an insurance agency reveals that while car insurance rates are set to rise across the United States in 2025, Wisconsin residents can expect a relatively modest increase. According to the study conducted by Insurify, which evaluated over 97 million insurance quotes nationwide, the national average for full-coverage policies is projected to climb further. However, Wisconsin's increase will be significantly lower compared to other regions.

The data indicates that Wisconsin’s car insurance premiums are anticipated to grow by only 3% this year, marking a sharp contrast from the previous year's substantial rise of 22%. This places Wisconsin well below the national projection of a 5% increase. For context, the average annual cost of full coverage in Wisconsin is expected to reach $1,730 in 2025, up from $1,681 in 2024. Despite these increases, Wisconsin remains one of the more affordable states for car insurance, with only 11 states and Washington, D.C. projected to have lower rates.

Nationwide, car insurance costs have been on an upward trajectory since 2022, with the average rate jumping nearly 35% over the past three years. Factors contributing to this trend include escalating vehicle repair expenses, particularly for advanced technology and electric vehicles, as well as insurers adjusting their pricing to account for increased risks associated with climate-related disasters and severe weather events. While some areas face steep hikes, Wisconsin's moderate increase offers a silver lining for its drivers, reflecting a more stable outlook in the state's insurance market.