Design Highlights
- In 2025, average full-coverage auto insurance costs are expected to drop by 6% to $2,144, following a significant rise since 2021.
- The anticipated decrease in 2025 suggests a temporary stabilization in rates, with only a 1% rise projected for 2026.
- Over 35 states are expected to see rate increases in 2026, contrasting with the 39 states experiencing stabilized or decreased rates in 2025.
- Factors such as loss ratios and previous claims will influence the projected rate increases and decreases across different states in 2026.
- Wyoming, Iowa, and Arkansas are notable for their significant rate reductions, contributing to the overall trend of improved competition in the insurance market.
Auto insurance rates are a wild ride, and Insurify’s latest predictions show just how bumpy it can get. In 2025, average full-coverage auto insurance costs fell 6% to $2,144. Sounds great, right? But hold on. That drop comes after a staggering 43% increase since 2021. Talk about a rollercoaster. The ride got so rough that 39 states saw rates either decrease or stabilize, a relief after the wild 46% rise from 2022 to 2024. Insurers finally decided to get their act together, improving margins and cutting rates to keep up with competition.
Now let’s look ahead to 2026. Insurify projects a modest rise of 1% in auto insurance rates, bringing the national average up to $2,158. While that sounds manageable, brace for impact—35 states are expected to see increases. Only 15 states will get to breathe a little easier with decreases. It’s all based on loss ratios and the rate environment, whatever that means. Financial strength and competition might help mitigate losses, but let’s be real: 1.8% increases in Georgia and a 1.4% decrease in Nebraska don’t exactly scream “stability.” National average cost of full-coverage car insurance is projected to reach $2,158 by end of 2026.
Some states are cashing in on the good news. Wyoming slashed rates by a whopping 30%, landing at just $1,052 annually. Iowa and Arkansas followed suit with 25% and 23% declines, respectively. Eight states saw drops of at least 15%. Your driving record matters too—a DUI violation can spike rates by 70-80%, so keeping that record clean is more important than ever.
Meanwhile, some areas are still feeling the pinch. Ten states recorded premium hikes up to $618 annually. Washington, D.C. is projected to hit $4,088 by 2026, which is just absurd. New Jersey, notorious for everything being overpriced, increased rates by 20% in 2025. It’s like they’re handing out bills like candy. Washington, D.C., and New Jersey are among the most expensive for auto insurance.
Digging into the data, Insurify analyzed 190 million real quotes. That’s a lot of numbers. They used this dataset to create the 2026 Insuring the American Driver Report. The projections consider state pricing trends, industry loss ratios, and even past actuarial losses. It’s a thorough examination, but at the end of the day, the driving factors are clear: more crashes and claims in crowded states, expensive repairs, and yes, those pesky natural disasters.
