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Auto premiums fall in several states as profitability improves
In Freeway Insurance customer data, average monthly premiums declined between Q1 2025 and Q1 2026, led by a 19% drop in Florida and a 15% decline in Oregon.
Freeway Insurance released findings from its latest Auto Insurance Report showing average auto insurance premiums among its customers fell in several states between the first quarter of 2025 and the first quarter of 2026. The company said the analysis is based on completed policy purchase transactions within its customer base, rather than quoted or estimated pricing, which it characterizes as more concrete realized pricing.
Florida recorded the biggest year-over-year decrease in average monthly premiums, down 19%, followed by Oregon, down 15%. New York and Illinois declined 11% each, Arizona and Alabama fell 10% each, Wisconsin dropped 9%, and Colorado, Georgia, and Texas each fell 8%.
The largest dollar declines were reported in Florida, New York, and Oregon, with average monthly premiums down more than $30 over the period. Freeway cautioned that the figures reflect aggregated data from its own customer base and do not necessarily represent statewide rate reductions for all drivers because premiums vary by driving history, age, location, vehicle, coverage selections, insurer, underwriting criteria, and available discounts.
The report links the easing pricing pressure to a sharp turnaround in insurer profitability. The personal auto line posted a net combined ratio of 91.8 in 2025, a 3.5-point improvement on 2024, according to the Insurance Information Institute, while a sample of major carriers improved their combined 2025 auto combined ratio by 2.2 points to 86.4, according to Moody's, with some insurers using improved profitability to lower rates and grow market share. Freeway also pointed to factors including moderating claims frequency and stabilizing vehicle repair, and noted that State Farm and USAA issued unusually large policyholder dividends based on 2025 results, according to S&P Global Market Intelligence.