Car Insurance Premiums Projected to Rise in 32 States by End of 2026, Insurify Report Finds
Key Takeaways
- •Insurify projects auto insurance premiums will increase in 32 states by the end of 2026, with rates having already risen in 27 states during the first half of the year.
- •Auto maintenance and repair costs have climbed 45% over the past five years, driven by vehicle technology such as cameras and sensors and by tariffs on imported vehicles and parts imposed in 2025.
- •Washington, D.C. carries the highest average full-coverage premium at $3,880 per year, while Connecticut is projected to post the largest increase at 15%.
- •New York premiums fell 13% since June 2025, saving drivers roughly $431 annually on average, yet the state still ranks among the ten most expensive for car insurance.
- •According to Insurify, 29% of drivers said auto insurance costs will influence how they vote, while more than half believe elections affect insurance prices.
Car insurance premiums are climbing again in more than half of the United States, according to a new midyear report from Insurify, an online insurance comparison platform. The report projects that auto insurance premiums will increase in 32 states by the end of 2026, and rates have already risen in 27 states during the first half of the year — reversing last year's national trend, when average premiums fell 6%.
The size of the increases varies widely by state, but the report identifies rising repair costs, more severe weather, and higher claim expenses as persistent pressures on insurers — and, ultimately, on policyholders.
Why car insurance rates are rising
Insurify's data suggests that last year's premium declines may have been short-lived.
"After rates fell in 2025, 2026 looks to be a year of normalization," Matt Brannon, Insurify's senior economic analyst and a licensed insurance agent, said in a press release. "Inflation, more expensive vehicle technology, and rising claims costs are often the types of factors underlying rate increases."
The turnaround follows one of the most volatile stretches in recent memory for the industry. Carriers raised rates steeply in 2023 and 2024 after claims costs outran pricing and many major auto insurers posted underwriting losses, a period in which the Bureau of Labor Statistics' motor vehicle insurance index rose faster than almost any other consumer spending category. Average rates then turned lower in 2025, and Insurify's projections suggest that reprieve is fading rather than deepening.
One of the biggest drivers is the rising cost of repairing today's vehicles. According to data from Insurify and the Bureau of Labor Statistics, auto maintenance and repair costs have climbed 45% over the past five years. Modern vehicles increasingly rely on cameras, sensors, and advanced driver-assistance systems, which can make even relatively minor collisions more expensive to repair. Component prices have faced additional pressure since 2025, when the U.S. imposed new tariffs on imported vehicles and auto parts.
Weather is also playing a growing role. Kentucky, for example, has experienced a sharp increase in hail events over the past several years, contributing to more comprehensive insurance claims and higher premiums. Severe thunderstorms and hail have driven record insured losses in the United States in recent years, according to reinsurance industry tallies, making weather a persistent pricing factor well beyond hurricane-prone coastal states.
The 10 most expensive states for car insurance
Even with recent declines, several states continue to carry some of the nation's highest average premiums for full coverage.
| Rank | State | Average annual premium | Projected year-over-year change |
|---|---|---|---|
| 1 | Washington, D.C. | $3,880 | -4.9% |
| 2 | Maryland | $3,646 | +1.8% |
| 3 | Rhode Island | $3,611 | +1.6% |
| 4 | Michigan | $3,229 | +1.1% |
| 5 | Delaware | $3,100 | +2.9% |
| 6 | Georgia | $3,091 | -0.8% |
| 7 | Nevada | $3,039 | +5.7% |
| 8 | South Carolina | $3,075 | +0.4% |
| 9 | New Jersey | $2,923 | -3.9% |
| 10 | New York | $2,840 | -3.8% |
Source: Insurify. Average annual premium as of June 2026.
New York posted one of the largest year-over-year declines in the country, falling 13% since June 2025. That translated into average annual savings of roughly $431 per driver, according to Insurify. Even so, New York remains one of the country's 10 most expensive states for car insurance.
States where car insurance may increase the most
Perhaps the most surprising finding is not that rates are increasing, but where those increases are happening. Several historically lower-cost states are seeing some of the largest jumps. Insurify estimates car insurance rates will rise the most in these states:
| State | Projected 2026 increase |
|---|---|
| Connecticut | +15% |
| Kentucky | +8% |
| West Virginia | +8% |
| Illinois | +6% |
| Nevada | +6% |
As with any projection, Insurify's midyear estimates could shift with second-half claims trends, catastrophic weather, and the pace of state regulatory approvals, so year-end results may land differently in individual states.
States where car insurance may decrease the most
Meanwhile, several traditionally expensive markets moved in the opposite direction during the first half of the year and are expected to decrease overall in 2026.
| State | Projected 2026 decrease |
|---|---|
| Washington, D.C. | -5% |
| New Mexico | -8% |
| New Jersey | -4% |
| New York | -4% |
| Massachusetts | -4% |
The regional differences highlight how localized auto insurance has become. Repair costs, weather risks, state regulations, litigation trends, and claim frequency all vary from state to state, so drivers in neighboring states can experience very different pricing trends. Rate regulation itself is handled state by state: insurers must file proposed rates with each state's insurance department, which reviews them under differing rules and timelines, meaning the same underlying cost pressures can reach drivers' bills at different speeds across state lines.
Higher premiums could become a bigger household budget issue
Auto insurance has become one of many recurring household expenses that have climbed in recent years. Unlike many of those costs, it is not optional for most drivers: nearly every state requires a minimum level of coverage, with New Hampshire the long-standing exception, so households facing higher premiums generally cannot simply drop the expense. Although last year's premium declines offered some relief, many drivers are still paying hundreds of dollars more than they were just a few years ago. Another round of increases could put additional pressure on household budgets, particularly in states where insurance costs are already well above the national average.
The issue may even carry political implications. According to Insurify, 29% of drivers said auto insurance costs will influence how they vote, while more than half believe elections affect insurance prices.
Ways drivers can try to offset higher costs
Even if premiums continue rising nationally, drivers are not necessarily stuck paying the first renewal price they receive. Several approaches may help lower costs:
- Shopping around. Comparing auto insurance quotes remains one of the most effective ways to reduce costs, since insurers assess risk differently and may offer widely varying quotes for the same driver. In an increasingly expensive market, checking rates at renewal time may become less of an occasional money-saving tactic and more of a regular part of managing insurance costs.
- Raising deductibles. A higher deductible lowers premiums because the higher the deductible, the less the insurance company has to pay when a claim is filed.
- Trying telematics. Most insurance companies now offer discounts through usage-based insurance. Drivers download an app or install a plug-in device that monitors mileage, driving habits, speed, and more.
- Bundling home and auto coverage. Combining home and auto policies with the same insurance company often provides significant savings.
- Maintaining a clean driving record. A clean record lowers rates, but a careless at-fault accident or speeding ticket can lead to a rate increase.
- Taking advantage of available discounts. Drivers can ask about student discounts, senior discounts, military and veteran discounts, and any discounts for safe driving, taking a defensive driving course, or enrolling in traffic school.
