Car insurance premiums are climbing again in more than half the U.S.

A new midyear report from Insurify, an online insurance comparison platform, projects that auto insurance premiums will increase in 32 states by the end of 2026. 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. However, the report suggests that rising repair costs, more severe weather, and higher claim expenses continue to put pressure 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.”

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 that can make even relatively minor collisions more expensive to repair.

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.

Read more: How inflation affects car insurance

10 most expensive states for car insurance

Even with recent declines, several states continue to have some of the nation’s highest average premiums for full coverage.

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 isn’t 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 jump the most in these 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. 

The regional differences highlight how localized auto insurance has become. Repair costs, weather risks, state regulations, litigation trends, and claim frequency vary from state to state, so drivers in neighboring states can experience very different pricing trends.

Read more: Best car insurance companies of 2026

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.

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 aren’t necessarily stuck paying the first renewal price they receive. There are still moves that may help drivers save.

• Shopping around for auto insurance remains one of the most effective ways to lower costs, since insurers assess risk differently and may offer widely varying quotes for the same driver. In fact, comparing car insurance rates at renewal time may become less of an occasional money-saving tactic and more of a regular part of managing insurance costs in an increasingly expensive market.

• Raising deductibles is another way to save. It lowers car insurance premiums because the higher the deductible, the less the insurance company has to pay when a claim is filed.

• Trying telematics for a discounted rate cuts down on costs. 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 with the same insurance company often provides significant savings. 

• Maintaining a clean driving record lowers rates, but a careless at-fault accident or speeding ticket can lead to a rate increase. 

• Taking advantage of available discounts can also help offset premium increases. 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.