For drivers, 2025 was an unusual year: car insurance got cheaper. That relief is now fading. A mid-year report from Insurify, updated in August 2026, shows premiums ticking up again in more than half the country.
The turnaround in numbers
Insurify puts the average annual cost of full-coverage car insurance at $2,237 in the first half of 2026, up 1% from the end of 2025. Last year the national average fell 6%, and 39 states saw declines. This year 27 states have already seen increases, compared with just nine in the second half of 2025, and Insurify projects 32 states will finish 2026 with higher rates. The national average is expected to reach about $2,242 by December. (The analysis covers drivers aged 20 to 70 with clean records and average or better credit.)
Which states are moving the most
Connecticut has seen the biggest increase so far, up 10% in the first half and projected to end the year about 15% above where it started. Some of the sharpest increases are in states that were historically cheaper: West Virginia rose 5% in the first half, and both West Virginia and Kentucky are projected to be about 8% higher year over year. Kentucky drivers went from paying below the national average to paying above it.
Not everywhere is rising. Washington, D.C., New Jersey, and New York each saw premiums fall by at least 5% in the first half. D.C. is still the most expensive market at an average of $3,880 for full coverage in June, and seven states plus D.C. average more than $3,000. Fewer auto thefts and fatal crashes helped push D.C. lower.
Why prices reversed
Insurers spent 2023 and 2024 raising rates to recover from a surge in costly claims; Insurify's driver report puts the cumulative increase from 2022 to 2024 at about 46%. Once profits recovered, carriers competed for customers in 2025 and trimmed prices. Now repair costs and weather-driven claims are pushing the other way. Tariffs on imported vehicles and parts remain a wildcard: Insurify has said that if they meaningfully raise repair and replacement costs, national premiums could rise closer to 4% rather than 1%.
Why the "average" depends on who you ask
If you have seen different national averages quoted, that is normal. Insurify's $2,237 reflects a specific driver profile, while CarInsurance.com puts the 2026 full-coverage average at $2,578, up from $2,513 in 2025. Neither is wrong; they use different samples. Use averages as a rough benchmark, not as a target price.
What to do now
- Shop before your renewal date. The price war of 2025 left wide gaps between carriers, so the cheapest insurer for your profile may have changed.
- Re-check discounts. Bundling, low mileage, telematics programs, and defensive driving courses are the usual levers.
- Raise your deductible only if you can cover it. A higher deductible lowers premiums but leaves you paying more after a claim.
- Do not cut liability limits to save money. Minimum limits rarely cover a serious accident.
- Avoid a lapse in coverage. Gaps can raise your rate at the next policy.
The cheap-insurance window of 2025 is closing. If you have not compared quotes in the last year, this is a good time to do it before rate increases reach your renewal.
Use our auto insurance calculator to estimate a fair premium for your vehicle and profile before you start shopping.