Car Insurance Costs Climb in the First Half of 2026: Insurify Projects Increases in 32 States by Year’s End

In 2025, car insurance prices did something they don’t normally do: fall. But 2026 trends suggest that this decline is ending. The average annual cost of full-coverage car insurance rose 1% in the first half of 2026, up to $2,237.

Last year, 39 states saw their average full-coverage premiums decrease, providing some financial relief for drivers. Since then, things have changed.

In May, inflation hit a three-year high and consumer sentiment hit record lows, amid concerns of affordability.^[1] Gas prices have risen from approximately $3 per gallon to $4.^[2] Auto maintenance and repair costs have been mounting as well, rising 45% in the past five years, double the rate of inflation.^[3]

Now, insurance rates are climbing again.

So far this year, 27 states have seen their insurance rates increase. As of mid-2026, drivers in seven states and Washington, D.C., pay more than $3,000 annually for full coverage.

In the summer of 2024, insurance premiums were at an all-time high as insurers struggled to catch up to a surge of costly claims following the pandemic. Those high premiums helped car insurance companies recover financially and enter 2025 in a more stable position.

In 2025, insurers began seeing fewer claims and started lowering rates, hoping to win over new customers shopping for insurance.^[4] The average driver found themselves paying $140 less for full coverage by the end of 2025, compared to 12 months earlier. But that period of falling premiums looks to have been short-lived, as rates have started to pick up again in 2026. After falling 6% in 2025, rates will end 2026 up 1% year-over-year based on Insurify projections, a 7-percentage-point swing in the national trend.

Five states are on track to see rates finish the year up 6% or more since the end of 2025: Connecticut (+15%), Kentucky (+8%), West Virginia (+8%), Illinois (+6%), and Nevada (+6%).

In some cases, insurers are raising rates in cheaper states while cutting them in more expensive states. Three of the most expensive places for car insurance, Washington, D.C., New York, and New Jersey, saw premiums fall at least 5% in the first half of 2026.

To provide more context, Insurify data scientists reviewed their database of more than 250 million proprietary quotes. Insurify identified the most expensive states for car insurance, as well as the states where premiums have risen the most and fallen the most in the past six months.

Key findings

• The annual average cost of full-coverage car insurance is $2,237 nationwide, up 1% since the end of 2025. In the first half of 2026, 27 states have seen their rates go up, compared to just nine states with increases in the second half of 2025.

• Insurify projects costs will rise slowly in the second half of 2026, finishing the year with an annual average of $2,242 for full coverage, a 1% year-over-year increase. Individually, 32 states are on track to see rates rise by the end of 2026.

• Drivers in Washington, D.C., pay $3,880 per year for full-coverage car insurance, more than in any state on average. The next-highest premiums are in Maryland ($3,646), Rhode Island ($3,611), Michigan ($3,229), and Georgia ($3,109).

• Connecticut drivers pay 10% more, an extra $251 annually, for full coverage compared to six months ago, the highest increase in the nation. The states with the next-largest increases are Kentucky (+6%), West Virginia (+5%), and Illinois (+4%).

• Three of the most expensive places for car insurance saw significant price drops in the first half of the year: Washington, D.C. (-7%), New Jersey (-5%), and New York (-5%).

The 10 most expensive states for car insurance

Nationally, car insurance premiums have dropped since their height in 2024, but some drivers are still paying stubbornly high premiums. Location is a big factor in insurance pricing, as communities have varying levels of risk.

The most expensive place for car insurance is Washington, D.C., where drivers pay $3,880 annually for full coverage. For comparison, D.C. drivers pay nearly four times what drivers in New Hampshire, the cheapest state, pay ($1,019).

Many of the most expensive places for car insurance are in the Northeast. The area has dense urban centers, which means more traffic and more accidents. More accidents mean more claims for insurers.

In many cases, those claims are more expensive. The cost of bodily injury claims, the most expensive for insurers, rose 36% nationally from 2020 to 2024. The cost of collision claims rose 42%.^[5]

1. Washington, D.C.

• Average annual cost (June 2026): $3,880

• Cost change, first half of 2026: -7% (-$278)

• Projected change, second half of 2026: +2% (+$75)

• End of 2026 projected cost: $3,955 (-5% year-over-year)

Although not technically a state, D.C. is the most expensive place in the nation for car insurance. The district has a high concentration of drivers operating in a tight area, creating more opportunities for collisions and car insurance claims. D.C.’s frequency of collision claims is nearly double the national average, according to National Association of Insurance Commissioners (NAIC) data.^[6]

D.C. also has a higher rate of vehicle theft than any state. At 623 thefts per 100,000 people, its rate is nearly four times higher than the median state, according to the National Insurance Crime Bureau.^[7] High average premiums ($3,880 annually) may explain why 23% of drivers in D.C. are uninsured, the third-highest rate in the nation.^[8]

Fortunately, premiums have fallen 7% in the past six months in Washington, D.C. That decrease follows a significant reduction in fatal crashes in 2025.^[9]

2. Maryland

• Average annual cost (June 2026): $3,646

• Cost change, first half of 2026: +1% (+$46)

• Projected change, second half of 2026: +1% (+$18)

• End of 2026 projected cost: $3,664 (+2% year-over-year)

Maryland drivers continue to pay some of the highest rates for car insurance. The state sees an above-average rate of car insurance claims, ranking in the top 10 for frequency of collision and bodily injury claims.^[6]

State laws requiring drivers to carry more insurance coverage can offer financial protection but also tend to cause higher premiums. Starting in 2024, the state required new policies to automatically include enhanced uninsured motorist coverage, though drivers can opt out.^[10]

The state also has higher minimum liability requirements than other states, like neighboring Pennsylvania. That’s one reason Maryland drivers pay nearly double what Pennsylvanians do for full-coverage car insurance ($3,646 vs. $1,930).

3. Rhode Island

• Average annual cost (June 2026): $3,611

• Cost change, first half of 2026: +2% (+$66)

• Projected change, second half of 2026: 0% (-$11)

• End of 2026 projected cost: $3,600 (+2% year-over-year)

Drivers in the Northeast often pay higher car insurance rates, and Rhode Island is no exception. A high cost of living contributes to higher costs for auto repairs, which factor into insurance pricing. The average collision claim in Rhode Island costs insurers $7,603.59, about $2,000 more than it costs in Iowa, for example.^[6]

In recent years, Rhode Island laws have required cars to be more heavily damaged before insurers can declare them a total loss, which can raise repair costs and, as a result, insurance premiums.^[11]

Additionally, a report from Allstate called Providence, Rhode Island, one of the riskiest cities for drivers, due in part to a high frequency of crashes.

4. Michigan

• Average annual cost (June 2026): $3,229

• Cost change, first half of 2026: +2% (+$49)

• Projected change, second half of 2026: 0% (-$12)

• End of 2026 projected cost: $3,217 (+1% year-over-year)

Outside the Northeast, Michigan has the highest average cost for full-coverage car insurance. Since the end of 2024, it’s gone from the 11th most expensive state for car insurance to the fourth most expensive.

Rates rose sharply early in 2025, as insurers recovered from high claims spending in 2024. Michigan auto insurers spent about $72 on claims for every $100 in premiums in 2024, one of the highest loss ratios nationwide. Some insurers paid out even more. For example, Farmers spent $115 on claims for every $100 made in premiums.^[12]

Michigan also has one of the highest rates of uninsured drivers nationally (22%), which is linked to increased costs for drivers with insurance.^[8]

5. Georgia

• Average annual cost (June 2026): $3,109

• Cost change, first half of 2026: -1% (-$16)

• Projected change, second half of 2026: 0% (-$8)

• End of 2026 projected cost: $3,101 (-1% year-over-year)

Georgia has been moving up the rankings for the most expensive states for car insurance. Full-coverage premiums in Georgia have increased 40%, or $900, in the past three years, nearly double the rate of increase for the national average (21%).

Rising rates follow rising costs for Georgia car insurance companies. Insurers in the state have posted above-average losses since the pandemic. The state ranks near the top nationally for frequency of bodily injury claims.^[6]

Things may be stabilizing, however, with rates falling 1% in the past six months. That reversal follows tort-reform legislation that aimed to lower excessive litigation costs for insurers, with the goal of passing those savings on to drivers.^[13]

6. Delaware

• Average annual cost (June 2026): $3,100

• Cost change, first half of 2026: +1% (+$27)

• Projected change, second half of 2026: +2% (+$63)

• End of 2026 projected cost: $3,163 (+3% year-over-year)

After a steep rise in recent years, Delaware car insurance rates have dropped 8% in the past 12 months. Delaware was one of many states to see a sharp rise in costs following 2022, a financially fraught year for insurers. For example, the state’s largest insurer, State Farm, paid out $97 in claims for every $100 it made in auto premiums, well above the national average.^[12]

In a 2025 bill establishing an insurance reform task force, Delaware legislators said rising rates have been a result of inflation, insurer losses from weather events, and increasingly expensive vehicle technology, among other factors.^[14] Since mid-2025, rates have dropped noticeably in Delaware, mirroring the national trend.

7. South Carolina

• Average annual cost (June 2026): $3,075

• Cost change, first half of 2026: 0% (+$11)

• Projected change, second half of 2026: 0% ($0)

• End of 2026 projected cost: $3,075 (0% year-over-year)

South Carolina has long been one of the more expensive states for full-coverage car insurance. Dangerous driving is a concern, with the state ranking No. 3 nationally for fatal crash rate in 2025, behind New Mexico and Mississippi.^[9] It also ranks in the top 10 for frequency of bodily injury claims.^[6]

South Carolina premiums depend on a number of factors, including the policyholder’s credit history. South Carolina has one of the biggest gaps between what drivers with poor credit and drivers with excellent credit pay annually for full coverage ($3,695 vs. $2,450).

8. Nevada

• Average annual cost (June 2026): $3,039

• Cost change, first half of 2026: +4% (+$116)

• Projected change, second half of 2026: +2% (+$51)

• End of 2026 projected cost: $3,090 (+6% year-over-year)

Nevada car insurance premiums have picked up recently, rising 4% in the past six months. Despite being a large state, most of Nevada’s residents are concentrated in metro areas, making it the second most urbanized state behind California.^[15] That density, as well as dangerous driving habits, leads to more opportunities for collisions.

Nevada reported 20% more fatal crashes than the average state in 2025.^[9] Allstate ranked Sunrise Manor, a Las Vegas suburb, among the 10 riskiest cities for drivers in 2026, based on claim data.^[16]

9. New Jersey

• Average annual cost (June 2026): $2,923

• Cost change, first half of 2026: -5% (-$164)

• Projected change, second half of 2026: +1% (+$43)

• End of 2026 projected cost: $2,966 (-4% year-over-year)

New Jersey drivers pay about $700 extra for full-coverage car insurance per year, compared to the average U.S. driver. New Jersey is highly urbanized, which pushes up crash frequency. It’s also situated in a high-cost area, which elevates repair costs.^[17] Both factors add upward pressure on car insurance rates. In 2024, New Jersey had a higher ratio of car insurance losses than any other state.^[12]

A growing share of uninsured drivers can also raise rates for drivers with coverage. From 2017 to 2023, New Jersey saw one of the largest increases in the rate of uninsured motorists.^[8]

10. New York

• Average annual cost (June 2026): $2,840

• Cost change, first half of 2026: -5% (-$153)

• Projected change, second half of 2026: +1% (+$40)

• End of 2026 projected cost: $2,880 (-4% year-over-year)

New York has long been one of the more expensive states for car insurance, with a high cost of living and much of the population residing in the dense metro area of New York City. Those factors drive up the cost and frequency of claims that insurers deal with, leading to higher premiums over time.

In 2024, New York auto insurers had the second-highest loss ratio of any state, spending $76 on claims for every $100 they made in premiums.^[12]

But there’s some good news. New York’s rates have dropped 13% in the past 12 months, and the state has gone from the fifth most expensive state for car insurance to the 10th most expensive. In addition to following the national trend of falling costs, insurers in the state may be seeing fewer very expensive claims, with the state reporting an 8% drop in fatal crashes in 2025.^[9] 

States with the biggest cost increases in the first half of 2026

In the first six months of 2026, 27 states saw their rates increase, compared to just nine states with increases in the second half of 2025.

Looking forward, Insurify projects rate increases in 32 states in the second half of the year. The biggest projected increases are in Connecticut (+4%) and West Virginia (+3%).

Insurers may be trying to lift rates in states that have long had below-average pricing. Of the 10 states that saw the biggest cost hikes, seven started the year with premiums below the national average. Kentucky drivers, in particular, went from paying $58 below the national average to $65 above the national average.

Other historically cheap states also saw increases in the first half of the year, like West Virginia (+5%), Wisconsin (+3%), New Hampshire (+3%), and Wyoming (+3%).

1. Connecticut

• Average annual cost (June 2026): $2,652

• Cost change, first half of 2026: +10% (+$251)

• Projected change, second half of 2026: +4% (+$101)

• End of 2026 projected cost: $2,753 (+15% year-over-year)

Connecticut has seen the biggest jump in car insurance costs of any state recently, with rates rising 10% since the start of 2026. In 2025, state officials cited the increase in car repair costs as a factor.^[18] Indeed, national auto maintenance and repair costs have risen 45% in the past five years, compared to 14% in the previous five-year period, according to Bureau of Labor Statistics data.^[3] The average collision claim in Connecticut costs about $7,285, one of the highest figures of any state.^[6]

Rising claims costs generally lead to rising premiums. In July, Allstate, one of the biggest insurers in the state, had an 8% total rate increase take effect. In the second half of 2025, 29 rate approvals took effect in the state for private passenger auto insurance — 18 increases, one decrease, and 10 with no total rate change.^[19]

2. Kentucky

• Average annual cost (June 2026): $2,302

• Cost change, first half of 2026: +6% (+$139)

• Projected change, second half of 2026: +2% (+$41)

• End of 2026 projected cost: $2,343 (+8% year-over-year)

In the past 12 months, Kentucky’s average car insurance costs have risen 7%, while the U.S. average has dropped 4%. Weather-related car damage, generally included in full-coverage insurance, may play a role in the increase. From 2023 to 2025, Kentucky has averaged 178 hail events per year, up from 76 per year from 2020 to 2022.^[20]

Kentucky drivers wondering why their rates have gone up should also know that credit history plays a bigger role here than in the typical state. Drivers with poor credit pay about $2,678 annually for full-coverage car insurance in Kentucky — 45% more than drivers with excellent credit pay ($1,843), according to Insurify data.

3. West Virginia

• Average annual cost (June 2026): $1,833

• Cost change, first half of 2026: +5% (+$82)

• Projected change, second half of 2026: +3% (+$57)

• End of 2026 projected cost: $1,890 (+8% year-over-year)

West Virginia’s premiums have been anything but calm in recent years. After the pandemic, the average annual premium rose rapidly to about $2,100, then started declining in mid-2024, once insurers found themselves on firmer financial ground. But that decline may have ended, with rates back to rising again, increasing 5% in the first six months of 2026.

Interestingly, despite its association with fossil fuels, West Virginia is one of just three states where the average cost to insure an electric vehicle (EV) is cheaper than a gas-powered vehicle.

4. Illinois

• Average annual cost (June 2026): $1,930

• Cost change, first half of 2026: +4% ($76)

• Projected change, second half of 2026: +2% (+$28)

• End of 2026 projected cost: $1,958 (+6% year-over-year)

Illinois drivers pay less than the national average for full-coverage car insurance, but rates have been heading upward recently. In the past three years, Illinois premiums have gone up by 41%, nearly double the rise in the U.S. average (21%).

In response to rising rates, lawmakers in May passed reforms to give regulators more authority to review rate increases and determine whether they’re excessive. Auto insurers would have to provide consumers with at least 30 days’ notice before raising renewal premiums by 10% or more (60 days for home insurance).

Opponents in the insurance industry argue that the additional regulation could stifle competition and lead to higher rates.^[21] The outcome remains to be seen, as the changes would go into effect July 1, 2027.

5. Nevada

• Average annual cost (June 2026): $3,039

• Cost change, first half of 2026: +4% (+$116)

• Projected change, second half of 2026: +2% (+$51)

• End of 2026 projected cost: $3,090 (+6% year-over-year)

Annual Nevada car insurance rates have hovered around the $3,000 mark for the last two years. Insurers struggled with high claims costs in 2024, with the third-highest loss-to-premium ratio of any state. State Farm, Nevada’s second-largest auto insurer, spent $89 on claims for every $100 it made in premiums, well above the national average ($66).

When insurers spend more on claims, rate hikes tend to follow. State Farm raised auto rates by 2.7% in January. American Family Insurance raised rates by 12%. Later, Allstate issued a 3.5% increase in the state.^[22]

The states with the largest cost decreases in the first half of 2026

The price reductions of 2025 have mostly subsided, and prices are now flattening out or increasing in much of the country. But some states are still seeing falling premiums, including states that have long had more expensive insurance costs.

Three of the most expensive places for car insurance, Washington, D.C., New York, and New Jersey, saw their rates fall by 5% or more in the first half of 2026. Changes in risk factors and regulations can cut down on insurer costs, which insurers can pass on to customers.

In Florida, for example, reforms targeting legal system abuse and claims fraud have helped cut down insurers’ litigation expenses and claims costs.^[23] The state saw average rates fall 4% in the first half of the year.

1. Washington, D.C.

• Average annual cost (June 2026): $3,880

• Cost change, first half of 2026: -7% (-$278)

• Projected change, second half of 2026: +2% (+$75)

• End of 2026 projected cost: $3,955 (-5% year-over-year)

Washington, D.C., still has the nation’s highest average premiums but has also seen a decline bigger than any state in the first half of the year. A smaller population often leads to more volatility in rates, as a lower number of claims can have an outsized effect on insurer losses.

Two loss factors improved for D.C. recently. Auto thefts declined by 24% in 2025, and the fatal crash rate dropped 45%, a bigger drop than in any state.^{[7] [9]}

2. New Mexico

• Average annual cost (June 2026): $1,632

• Cost change, first half of 2026: -6% (-$97)

• Projected change, second half of 2026: -3% (-$45)

• End of 2026 projected cost: $1,587 (-8% year-over-year)

New Mexico premiums have been on a steady decline, falling 15% since the end of 2024. Insurers have consistently posted losses lower than the national average, which means they have less financial pressure to raise premiums. Recent premium reductions coincide with a sharp 37% decrease in stolen vehicles in Albuquerque, the state’s largest metro area.^[7] Insurify projects rates will continue to drop in the second half of 2026, ending the year at $1,587.

3. New Jersey

• Average annual cost (June 2026): $2,923

• Cost change, first half of 2026: -5% (-$164)

• Projected change, second half of 2026: +1% (+$43)

• End of 2026 projected cost: $2,966 (-4% year-over-year)

New Jersey drivers continue to pay some of the highest rates in the U.S. Full-coverage rates rose an average of 20% in 2025, as state regulators approved 68 rate hikes, with some as high as 30%.^[24]

Lately, residents have caught a respite, with rates sliding 5% in the first half of the year. Less dangerous driving could play a role in that dip. The state saw a significant 13% decrease in fatal crashes from 2024 to 2025. But rates could tick up again later in 2026, following new requirements for drivers to carry higher coverage limits.^[25]

4. New York

• Average annual cost (June 2026): $2,840

• Cost change, first half of 2026: -5% (-$153)

• Projected change, second half of 2026: +1% (+$40)

• End of 2026 projected cost: $2,880 (-4% year-over-year)

Car insurance rates in New York have been a roller-coaster in recent years. The average annual cost surpassed $3,400 at the end of 2024 but has since fallen by about $600. One likely factor was a drop in auto thefts in the state. The frequency of stolen cars dropped by 29% in 2025, which brings down claims costs for insurers and can lead to lower rates.^[7]

High rates, however, are still causing political pressure. In May, state officials agreed on a budget for the upcoming fiscal year that includes measures to reduce car insurance costs, including additional enforcement for staged accidents that can drive up rates for others.

Other changes include requiring insurers to give excess profits to policyholders. A budget commission estimated the reforms could lead to a 10% reduction in premiums over time.^[26]

5. Massachusetts

• Average annual cost (June 2026): $1,690

• Cost change, first half of 2026: -5% (-$86)

• Projected change, second half of 2026: +1% (+$23)

• End of 2026 projected cost: $1,713 (-4% year-over-year)

Massachusetts auto insurers consistently post losses that are lower than the national average, which puts less upward pressure on premiums compared to neighboring states. In 2025, drivers and insurers also benefited from a 31% drop in stolen cars in the state, which meant fewer comprehensive claims. Premiums could start to rise, though, as more drivers adapt to higher mandatory minimum coverage amounts that took effect in mid-2025.^[27]

Drivers in the state should keep in mind that many variables affect their insurance rates, including the type of vehicle they drive. For example, it costs 54% more to insure a new EV than a new gas-powered vehicle in Massachusetts, the biggest gap of any state.

5 Questions Drivers Should Consider to Get the Best Deal on Car Insurance

Car insurance has long been one of Americans’ priciest recurring expenses. While drivers enjoyed falling car insurance costs in 2025, they can’t count on rates dropping in 2026. But by asking themselves a few questions about their car insurance, drivers can gauge whether they’re getting a good deal on their coverage, or if it’s time to shop around for new quotes.

1. When was the last time you compared car insurance rates?

Experts recommend that drivers compare car insurance once or twice each year to make sure they aren’t overpaying. The insurer that gave you the best deal a few years ago might not be the best option today. Drivers with similar backgrounds can see rates vary from $100 to $200 per month for full coverage.

2. Do you have enough car insurance coverage for your needs?

Drivers who don’t carry enough insurance coverage put themselves at risk of serious financial problems down the line. Drivers should pick their coverage limits based on a combination of considerations, like state minimums, the driver’s assets and vehicle, and driving habits, among other factors.

3. Should you raise your deductible?

When drivers want to cut back on insurance costs, one of their first moves is often to raise their deductible. Drivers should weigh their financial situation before deciding on a deductible. If they’d be able to pay a $1,000 repair with little difficulty, for example, it could make sense to carry a higher deductible.

4. Are you bundling policies and taking advantage of all possible discounts?

Even as insurance rates rise, insurers still offer a range of discounts and other ways to cut down on premiums. Bundling auto with another policy, like homeowners or renters, is among the most common and can come with discounts up to 25%. Lesser-known discounts may also be available for paying your premium in full, using auto pay, or staying under a certain annual mileage.

5. How do you stay up to date on car insurance rates?

An Insurify survey found that nearly 7 in 10 drivers believe they could save more on car insurance costs if they spent more time researching them. Whether they’re shopping for a new policy or happy with their current coverage, drivers should get into the habit of checking insurance rates every few months to know if they’re overpaying.

Methodology

Insurify’s data scientists examined more than 250 million rates in its proprietary database, quoted via integrations with partnering insurance companies. Driver applications originate from all 50 states and Washington, D.C., and include information on the exact coverage specifications of each driver’s quoted policies. Insurify excluded Alaska data due to lower quoting volume.

The premiums in this report reflect the median insurance cost for drivers between the ages of 20 and 70 with clean driving records and average or better credit, unless otherwise noted. Yearly prices in this report are two-year rolling medians to manage extreme market volatility over the past few years.

Full-coverage premiums correspond to policies with bodily injury limits between state-minimum requirements and $50,000 per person, $100,000 per accident; property damage coverage between $10,000 and $50,000; and comprehensive and collision coverage with deductibles of $1,000.

To project how much the average driver will pay for full-coverage insurance by the end of 2026, Insurify data scientists analyzed the latest pricing trends in each state as well as expected industry-level loss ratios in 2025. They then used this information to project rate-change magnitude in every state through the end of the year.