Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure. 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.
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 Even with recent declines, several states continue to have some of the nation's highest average premiums for full coverage. 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.
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