Rising Again: Car Insurance Rates Set to Climb in More than Half the Country by Year's End, Insurify Projects

After falling 6% nationwide in 2025, rates rose in 27 states during the first six months of the year.

CAMBRIDGE, Mass., Aug. 11, 2026 /PRNewswire/ -- After a 6% national drop in 2025, car insurance rates are projected to climb back in more than half the country, with 27 states posting increases in the first half of 2026, according to Insurify's 2026 Mid-Year Auto Report.

By the end of the year, 32 states will see rate increases, Insurify projects. Connecticut drivers face the steepest  year-over-year hike at 15%, followed by  Kentucky (+8%), West Virginia (+8%), Nevada (+6%), and Illinois (+6%) round out the top five. Kentucky drivers are already feeling the impact of rising rates. Their premiums went from $58 below the national average to $65 above it.

Higher repair costs are contributing to the jump in auto insurance rates. Auto maintenance and repair costs rose 45% over the past five years. Last year, the Connecticut Insurance Department advised that rising repair costs  are one factor pushing premiums higher. Severe weather is also adding to the problem in places like Kentucky, where hail events jumped from 76 a year (2020–2022) to 178 a year (2023–2025), driving up comprehensive claim costs.

While rates are rising in some historically inexpensive states for car insurance, three of the most expensive states bucked the early-year trend and experienced rate decreases. Full-coverage car insurance rates fell in Washington, D.C. (-7%), New Mexico (-6%), New Jersey (-5%), New York (-5%), and Massachusetts (-5%) in the first half of 2026.

Year-over-year, New York experienced a 13% rate plunge since June 2025, moving it from the fifth most-expensive state for car insurance to the 10th. This is an annual saving of $431, on average. But Empire State drivers still pay more than the national average for full coverage – $2,840 annually in New York vs. $2,237 nationally. Washington, D.C. and New Jersey drivers also face annual averages exceeding $2,800.

"We expect most states to see rates rise this year, and drivers should plan for that," said Matt Brannon, Insurify senior economic analyst and a licensed agent."After rates fell in 2025, 2026 looks to be a year of normalization. Inflation, more expensive vehicle technology, and rising claims costs are often the types of factors underlying rate increases."

The increases could also shape how voters vote. Nearly one-third (29%) of drivers say auto insurance costs will play a role when deciding how to vote, while 54% believe elections affect car insurance costs, according to a recent Insurify survey.

For more insights into car insurance rate trends, download Insurify's data and read the mid-year report.

About Insurify:

Insurify is America's top-rated online insurance marketplace, offering a secure, spam-free way to compare and buy coverage. With a network of 120-plus carrier partners, Insurify empowers consumers to compare auto, home, pet, and renters insurance in minutes, online or with the help of a licensed agent. Since 2016, Insurify's AI-powered technology has served over 250 million quotes. By using Insurify, customers can save hundreds of dollars annually, with some saving up to 50% on their premiums. In 2026, Insurify expanded its innovation with Insurify Car, providing coverage through flexible, payment options underwritten by its insurance carrier partners.

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SOURCE INSURIFY, Inc.