120+ more*Quotes generated for Insurify users within the last 10 days. Last updated on June 4, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on June 4, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
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Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
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30+ years in financial services
Clinical Professor of Finance, University of San Diego
Updated
Car insurance rates can increase from one year to the next for several reasons, including:
A change in your driving record, such as an accident or ticket
A different car on your policy that’s more expensive to insure
An increase in severe weather events or vehicle theft rates in your region
New state laws mandating higher car insurance coverage requirements
Rising rates of accidents or reckless driving in your region
Insurify projects a 1% increase in car insurance costs nationwide for 2026. Personal factors, such as traffic violations and accidents, and regional changes in theft or accident rates affect your car insurance costs.
You can lessen the blow of a car insurance rate hike by driving safely, improving your credit history, and making sure you’re getting all the discounts you qualify for.
Auto insurance rate increases in 2025 were highest in Washington, D.C., and New Jersey, with premiums rising 18% and 20%, respectively.
While it’s frustrating to receive an auto insurance rate hike, there’s usually a reasonable explanation. Changes to your driver profile, along with regional car insurance trends, often drive those increases.[1]
Inflation and tariffs raise repair costs and disrupt supply chains. These macroeconomic trends contribute to rising car insurance premiums.
Personal factors, such as a new violation on your record or a recent claim, can increase your insurance rates. If you add a higher-risk driver — especially a teenager — you’ll also likely see higher insurance costs.
Regionally, higher theft rates, more reckless driving, recent severe weather losses, and new car insurance laws mandating higher minimum coverage can all increase premiums.
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A moving violation is a ticket for speeding, running a red light or stop sign, driving under the influence, or another instance of unlawful or reckless driving. These violations — especially for drunk driving — will flag you as a high-risk driver and increase your insurance rates.
Statistics justify these rate increases. Speeding is a factor in about one-third of fatal crashes, while drunk driving contributes to about 30%, according to the National Highway Traffic Safety Administration.[2] [3]
Nationwide, a speeding ticket raises the cost of full coverage by almost 30%, while a DUI conviction increases insurance costs by about 45%, according to Insurify data.
DUIs stay on your driving record for five to 10 years, depending on the state. Typically, speeding tickets stay on your record for three to five years, but this varies by state. Your rate increase and how long it lasts depend on your state and insurance company.
Non-moving violations, such as parking tickets, don’t go on your driving record, so they don’t affect insurance rates.
An at-fault accident can raise your rates for about three years. To estimate how long an accident will stay on your record, it’s important to factor in the severity of the crash, repair costs, and medical expenses.
In states with no-fault insurance laws, such as Florida, policyholders file bodily injury claims with their own insurer, regardless of who caused the accident. If the accident wasn’t your fault, your insurer may still increase your rates, though likely not as much.
But in some cases, even an accident you didn’t cause can lead to higher premiums. Whether an accident affects your rates — and by how much — varies by state and insurer.
The more your insurer pays out on your behalf, the longer you’ll have higher premiums.
If you’ve made an auto insurance claim in the past, your insurance company likely submitted it to a national database that insurers check to set rates. Having past claims indicates greater risk and often leads to higher car insurance premiums.
How much your auto insurance rates increase after a claim depends on your state, insurance company, and type of claim. Comprehensive claims, which cover repair costs or car replacement after fire, severe weather damage, falling objects, an animal strike, or theft, typically have a smaller effect on your rates.[4]
Collision claims, on the other hand, may flag you as accident-prone and can lead to higher rates.
Some states have laws that limit the amount your insurance company can raise your car insurance premiums after a claim.
More drivers on an auto policy means more miles on the road, which increases the overall likelihood of an accident. For this reason, adding a new driver to your auto insurance policy generally increases your rates.
That being said, some drivers increase rates more than others for additional drivers. Adding a teen driver to your policy tends to have the most significant effect, since young drivers lack experience and are more likely to cause an accident.
Full coverage for a teen driver costs nearly twice the national average, according to Insurify data.
In contrast, adding a driver in their 60s typically results in a much smaller rate increase due to their years of driving experience.
To avoid issues in the event of an accident, be sure to add anyone who regularly uses your car to your policy.
Insurance companies analyze local insurance risks to set auto insurance rates. Changes in claims rates or crime statistics typically affect local and regional car insurance rates from year to year.
In addition, a severe weather disaster from the previous year, such as a catastrophic flood or hurricane, can put insurance companies in a financial hole. Paying out numerous claims may lead insurers to raise rates the following year to recoup losses.
Location also matters. Congestion and population density contribute to higher rates of accidents, theft, vandalism, and other incidents. This is why insurance in urban areas generally costs more than in rural ZIP codes.
While an auto insurance rate hike can be upsetting — especially if you haven’t had an accident or filed a claim — here are several concrete steps you can take to lower your premiums and find cheaper car insurance.
One of the most effective ways to lower your car insurance premiums is to shop around and compare quotes. Insurance companies use different metrics and formulas to set premiums, so shopping around is the best way to make sure you’re not overpaying.
Quote-comparison tools make it easy to compare prices from multiple insurers all at once.
When you’re comparing quotes, it’s a good idea to do separate searches for liability-only and full-coverage auto insurance policies.
Safe driving habits pay off when it comes to car insurance rates. Driving the speed limit, making full stops at all stop signs, and avoiding driving during peak traffic hours and severe weather events can help you stay accident-free.
Maintaining a clean driving record allows rate increases from existing accidents and violations to expire and safe-driving discounts to kick in.
Some insurers, including GEICO and State Farm, offer telematics programs that monitor your driving habits and reward actions like safe braking and driving fewer miles.
Discount availability varies by state and insurance company, but these are the most common insurance discounts to look for:
Safety features and anti-theft equipment
Multi-car and multi-policy discounts
Driver’s education (defensive driving or safety courses)
Employer or membership discounts (including teachers and military)
Student discounts (for good students or those away at school)
Usage-based discounts
Ask your insurance agent about available discounts to see what you qualify for.
The next time you change cars, you can improve your chances of better insurance rates by choosing a model with lower repair costs, strong safety features and ratings, a robust security system, and no theft issues. Car insurance companies take these and other factors into account when setting your rates.
The Dodge Caravan, Subaru Outback, and Honda Fit are among the cheapest cars to insure in 2026, according to Insurify.
To keep costs in check, consider car insurance costs when shopping for a new vehicle.
Your deductible is the amount you pay out of pocket when making a claim. Higher deductibles reduce your insurance company’s potential payout, leading to slightly lower rates.
Safe drivers and people with sufficient savings are best positioned to choose a higher deductible in exchange for lower premiums. But make sure you can afford to pay a higher deductible out of pocket if you have a claim.
Comprehensive and collision coverages — which together with liability make up a full-coverage auto policy — cost more than liability-only coverage. Dropping these coverages from your policy will likely reduce your premiums.
Before removing comprehensive and collision coverage, be sure you’re not exposing yourself to catastrophic losses. If you depend on your car and don’t have enough savings to repair or replace it out of pocket, an at-fault crash or theft could be financially devastating.
If you lease or finance your vehicle, your lender likely requires full coverage until it’s paid off to protect its financial interest.
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Insurance rates vary widely by state. Some states are experiencing large increases, while in others, premiums are declining.
In 2025, premiums increased the most in New Jersey, Michigan, Rhode Island, and Washington, D.C. Six additional states also saw average rate increases.
In some states, like Michigan and New Jersey, natural disasters and extreme weather events contributed to higher insurance rates. Other places are plagued by rising vehicle theft rates, such as Washington, D.C., or higher rates of fatal crashes, as in Hawaii.
But even if rates in your state or region dropped in 2025, insurance costs have increased overall within the past few years. National average premiums jumped 46% between 2022 and 2024, then dropped 6% in 2025.
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Find out more about the rising costs of auto insurance with the answers to these common questions below.
Your insurance premiums can increase for several reasons, including factors beyond your control. Rising vehicle theft rates, more crashes, and severe weather events increase regional insurance costs, leading to higher premiums for you.
The length of time a speeding ticket stays on your driving record varies by state, ranging from one to 10 years. You’ll likely pay higher premiums for about three years.
Many of the best insurance companies offer discounts for taking a defensive driving course. Before you commit to a class, confirm the discount with your insurance agent and make sure the course qualifies.
Nationwide, car insurance premiums fell 6% in 2025 and are expected to rise 1% on average in 2026, according to Insurify data. It’s not yet clear how tariffs will affect insurance rates, but they could lead to higher premiums.
Home and auto insurance policy bundling discounts vary by insurance company. But they’re typically around 10% and can reach 25%. A bundling discount is also referred to as a multi-policy discount.
Shopping around can help offset the effects of car insurance rate increases. Comparing rates from several companies ensures you’ve found the best price possible for your situation. Using online quote-comparison tools makes this process faster and easier.
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Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
30+ years in financial services
Clinical Professor of Finance, University of San Diego
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