After closing 2025 with insurance premiums down 6%, rates are projected to finish the year with a 1% increase.
But as car shoppers weigh different models and insurance costs, it’s worth noting that at least 10 models saw at least a 15% drop in annual premiums, including several EVs, according to Compare.com.
Driving the news: In the years following the pandemic, insurance costs rose as much as 40% as the price of vehicles and repairs escalated.
That trend reversed last year, with insurance premiums dropping to an average of $2,144.
This year, prices are up again, with full coverage for 2025 and 2026 models at $2,879, though premiums vary by vehicle, location, and individual drivers based on risk factors analyzed by insurance companies, Compare.com economic analyst Julia Taliesin noted.
Some models present savings: While prices may be rising on average, Compare.com found at least 10 models that saw premiums fall between 15% and 19%, or $509 and $917.
The vehicle with the largest percentage decrease was the Hyundai IONIQ 5, which saw rates drop 19% or $704 to an annual cost of $2,990.
Notably, the IONIQ 5 did have an $8,000 drop in its MSRP from the previous year.
Among the top 10, six were EVs, hybrids, or offered a hybrid option.
Taliesin said the change in EV premiums is a result of battery production increasing, prices adjusting, and more adoption.
“I think a big factor for EVs is that when we talk about insurance, we’re talking about risk. Insurers love predictability,” Taliesin noted. “The better they can predict and estimate risk, the more accurately they can price premiums. EVs have slowly been added to the streets, and you can see adoption rates increasing. With that comes more data about these vehicles on the road and who’s driving them.”
Top surprises: The top 10 featured several SUVs, a few premium brands, and one muscle car.
The Dodge Charger saw the largest dollar amount decrease of $917, but the premium for the muscle car is still $4,146.
The large Toyota Sequoia and Toyota Highlander each had 17% drops, with savings between $522 and $561.
The Sequoia was the most expensive vehicle in the top 10, with an MSRP of $65,725.
“Being a quote-unquote ‘family vehicle,’ it is definitely a plausible part of the explanation for why there are lower premiums for a car like the Sequoia,” Taliesin said. “It is more expensive. It is more family-oriented given the increased amount of seating. It’s possible that the driver profile skews maybe a little bit older, maybe a little more safety-minded. They may also have better credit, and in most U.S. states, insurers can assess credit history as part of insurance rate setting.”
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On the opposite end: One vehicle saw a 23% increase in premiums this year, the Audi S5, adding $939 to an annual cost of $4,937.
The other vehicle to see a double-digit jump was the Acura RDX, with a 10% increase to $2,581.
The Nissan Murano and Genesis GV80 had 9% spikes.
Bottom line: In weighing the overall costs of vehicle ownership, monthly insurance premiums are an important consideration. Knowing the costs can become a selling point for dealers.
“Monthly ownership costs matter to consumers right now, maybe more than ever, and insurance plays a huge role,” Taliesin said. “Encourage your customers to consider insurance costs when looking at a vehicle to establish yourself as a trusted partner.”
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