Thanks to President Donald Trump’s massive Immigration and Customs Enforcement (ICE) operations to deport illegal aliens in the country, the national average rate increase for auto insurance has plummeted to less than one percent in what is being called the “smallest year-over-year increase since 2022”, a major bit of good news for American drivers.
While it’s important to keep in mind that the .67 percent hike is a national average, and some states are seeing bigger hikes, numerous others aren’t seeing any rate hikes at all and a few lucky states have even experienced falling prices in the cost of insurance, a big win for residents during a time when extra cash in the pocket goes a long way. Further, when that national average is compared to previous years of major hikes, the drop is significant.
The hike in 2023 was 11.57 percent and 17.13 percent in 2024. In 2025, it was 7.56 percent. The states suffering from unfavorable cases of rate increase are Democrat-led, with New Jersey being the worst at 10.46 percent higher this year. Some of the other states are Nevada with a 6.42 percent rise, California at 6.13 percent, New York at 6.02 percent, and Washington DC is seeing a rise of 5.36 percent.
Such is the data coming from a major report in Breitbart News, which also noted that the individual companies with the worst rate hikes include Allstate, American Family, Farmers, Geico, and Nationwide. Other companies that had rates that took a dive include Progressive, Travelers, USAA, Liberty Mutual, and State Farm. Aside from deporting illegal aliens, the president’s America First economic agenda, coupled with his dedication to making things more affordable for average Americans, also helped insurance rates to drop.
To provide a snapshot of how deportation is impacting the overall economy, wages for American workers have gone up, while housing costs have gone down. Inflation is now dropping, as are the costs of transport. Streets are safer as crime rates decrease exponentially. Corporations are also spending more money to help Americans become more productive and earn more wages per working hour.
Insurance rates were also on the rise due to the industry’s reaction to a dramatic increase in car thefts, many of which were perpetrated by migrant gangs who entered the country under the watch of former President Joe Biden, and others of which were perpetrated by criminals in jurisdictions with soft-on-crime DAs who refused to lock them up. A report from the Common Sense Institute revealed that the huge number of auto thefts added up to a total of $277 million in increased motor vehicle insurance premiums. When the numbers are crunched, that means $239 per household, or $19.93 per month, in 2023.
During the four years Biden was in the White House, almost everything that is connected to the automobile sector went up by leaps and bounds. Even the costs of basic repairs, such as oil changes, parts, gas, coolants, and more skyrocketed. Insurance followed suit. An article from Brad Magick, an insurance underwriter, says that a decrease in insurance purchases by illegal immigrants, which totals around 11 million in the U.S., could lead to big drops in insurance costs due to a decrease in active shoppers. It’s not only the removal of these individuals from the country that could be contributing to the drop in rates, but also a “chilling effect” as those who haven’t been deported yet try to avoid institutional interactions.
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