The car insurance industry changes at lightning speed. If you’re an everyday driver who wants to stay updated on the latest news and happenings, we’re here to help.
Our team did the heavy lifting and compiled this car insurance news roundup for September 2025.
LexisNexis finds that car insurance shopping rose during Q2
According to LexisNexis, car insurance shopping rose during the second quarter of 2025. The LexisNexis Demand Meter, which monitors consumer auto insurance shopping in the U.S., found a 9.4% hike in shopping and a 3.6% increase in new policies.
Highly populated states like New Jersey, Texas, California, and Florida led the way in shopping growth rates in Q2.
S&P Global rankings downgrade State Farm in California
S&P Global, a major credit agency, reduced its financial strength rating for State Farm in
California for the second time in almost three months. State Farm’s California arm went from an A+ to an A-, due to the insurance company’s “significant exposure to natural catastrophe risk.”
Illinois Secretary of State announces a campaign to address unfair car insurance practices
Alexis Giannoulias, Illinois Secretary of State, launched an advocacy campaign to help stop car insurance companies from using socioeconomic data like age, ZIP code and credit score to determine premiums.
Illinois residents are encouraged to share their experiences with skyrocketing rates due to their socioeconomic status.
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Volvo now offers car insurance in select states
Volvo Car Financial Services announced its first independent car insurance agency in America. Now offered in some states, Volvo Car Insurance Services matches customers to car, umbrella and specialty policies that are underwritten by well-known companies.
Customers can request personalized quotes, compare their options and bundle policies via the Volvo mobile app.
Car insurers are dropping coverage for Tesla Cybertrucks
Tesla Cybertruck drivers are facing limited car insurance options. Some insurance companies refuse to insure Cybertrucks due to the truck’s low production numbers and design, making repairs very expensive.
GEICO and Hanover Insurance are two examples of insurers that have terminated Cybertruck policies.
Consumer advocates try to end marital-status discrimination in car insurance
The California Court of Appeals is investigating a case related to the use of marital status in car insurance pricing.
According to Consumer Watchdog, a public-interest organization, this practice violates California’s Unruh Civil Rights Act and Proposition 103, which was enacted to end arbitrary insurance pricing and mandate that premiums be based on driving history, miles driven, and years of driving.
Insurance companies are lowering rates in Louisiana
Timothy J. Temple, Louisiana Department of Insurance Commissioner, announced that several car insurers are lowering rates in the Pelican State as accident rates have declined.
Since the beginning of 2025, more than 20 insurance companies have decreased rates in Louisiana, and 14 of these reductions were more than 1%.
Florida drivers are at a higher risk of premium increases than drivers in other states
While car insurance rates have increased everywhere, Florida residents are particularly vulnerable to these premium hikes. Factors like tourism, traffic congestion, and the no-fault insurance system that increases costs all contribute to the higher car insurance costs in the Sunshine State.
Sources
- LexisNexis. “U.S. Insurance Demand Meter.” Accessed September 2025
- Miami’s Community News. “Why auto insurance rates are rising—especially in South Florida.” Accessed September 2025
- Louisiana Department of Insurance. “Recent Auto Insurance Decreases Driven by a Reduction in Accident Frequency.” Accessed September 2025
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- PR Newswire. “Consumer Advocates Urge Court to End Marital-Status Discrimination in Auto Insurance.” Accessed September 2025.
- Autoblog.com. “Another Tesla Cybertruck Headache.” Accessed September 2025.
- Topspeed.com. “Volvo Turns Insurance Agent.” Accessed September 2025.
- WTTW.com. “Business Illinois Secretary of State Launches Campaign to End ‘Unfair and Discriminatory’ Car Insurance Rate Practices.” Accessed September 2025.
- San Francisco Chronicle. “State Farm downgraded in California by major financial rating agency.” Accessed September 2025.
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