In the first half of 2026, after a decrease in 2025, the cost of car insurance in the United States is on the rise, with more than 30 states expected to see premium increases according to a new report.
A study by the insurance evaluation and comparison company Insurify revealed that car insurance costs dropped by 6% last year, with drivers in 39 states experiencing a decrease in the average price of full-coverage insurance. However, in the first half of 2026, the average cost of full-coverage insurance increased by 1% to $2,237, with 27 states already experiencing premium hikes, and this number is projected to reach 32 states by the end of the year.
Snejina Zacharia, CEO of Insurify, stated in an exclusive interview with FOX Business, “Unfortunately, the majority of states are experiencing an upward trend in insurance costs this year. The impact of severe weather and major accidents remains significant.”
Zacharia further explained, “In addition, we have observed a 45% increase in repair costs for vehicles. Repair costs are a major cost driver in insurance claims and records, so insurance companies are adjusting premiums accordingly based on the situation in each state.”
She pointed out that the trend of rising repair costs began a few years ago during the COVID-19 pandemic and chip shortage period, influenced by overall economic inflation and automotive parts tariffs, with these costs continuing to climb.
States with historically lower repair costs are seeing the most significant increases this year, according to Insurify’s report. For example, West Virginia saw a 5% increase in insurance premiums, while drivers in Kentucky have seen a shift from being $58 below the national average to $65 above it.
By the end of 2026, insurance premiums are expected to increase by 8% in both Kentucky and West Virginia.
Zacharia emphasized, “We anticipate the most significant increase to occur in Connecticut, a small state where car insurance premiums are expected to rise by 15% compared to a year earlier. Over the past five years, insurance premiums in the state have already increased by 67%, unfortunately, most states are seeing substantial overall price hikes.”
On the other hand, some regions in the U.S. have experienced decreases in insurance premiums in the first half of the year, such as Washington D.C. with a 7% decrease. It is projected that by the end of 2026, the net value of premiums in this area will decrease by 5% compared to a year earlier. However, the average premium in Washington D.C. still remains the highest nationwide at $3,955 for full-coverage insurance due to a decrease in car thefts and fatal accidents.
New Mexico saw a 6% decrease in insurance premiums in the first half of the year, a trend expected to continue through the end of the year with a final decrease of 8%, resulting in premiums of $1,587.
Both New York and New Jersey experienced a 5% decrease in insurance premiums in the first half of 2026, with a projected annual decrease of 4% by the end of the year, averaging around $2,900 for each state.
Zacharia suggested that consumers can take certain strategies to reduce insurance premiums, such as increasing deductibles or adjusting coverage limits in their policies.
She explained, “For instance, if your car is old and the cost of insuring it is almost equal to the cost of replacing the vehicle, you may not need comprehensive and collision insurance; because in this case, the annual premiums you pay are close to the total value of the car.”
“Furthermore, the discounts offered by each insurance company vary, which is why it is crucial to compare quotes from multiple insurers. People often mistakenly believe that simply staying with an insurance company for 10 or 15 years will automatically qualify them for a ‘loyalty discount’,” Zacharia said.
“For most customers, insurance rates often vary widely; unless you compare similar insurance companies from top insurers and some regional insurers, you will never know what a fair insurance rate is or if you are getting the best quote for car insurance.”
Zacharia mentioned that the Insurify platform aggregates discount information from 120 auto insurance companies to provide each customer with a personalized and exclusive quote tailored to their needs.