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Insurify's 2026 Insuring the American Driver Report

Insurify, recognized as America's leading online insurance agent, recently published the 2026 Insuring the American Driver Report. This comprehensive report sheds light on the trends affecting car insurance costs across the United States and provides projections for the future. As the automobile insurance landscape evolves, both consumers and insurers face a challenging terrain.

In 2025, there was a notable shift in auto insurance pricing, particularly in 39 states where premiums declined. However, this positive trend was overshadowed by alarming increases in places like Washington, D.C., and New Jersey, which saw significant price hikes. According to data gathered from more than 190 million real auto insurance quotes, it was observed that while the average cost of full-coverage auto insurance nationwide fell to $2,144 after a 6% drop in 2025, many states faced steep increases.

Looking ahead, Insurify forecasts that the national average for full-coverage car insurance will see a slight increase, reaching $2,158 by the end of 2026. This projection suggests a 1% rise, which may seem modest but comes alongside the backdrop of an alarming 43% rise in costs since 2021. In some of the most costly regions, rates are expected to surge even more dramatically.

For example, Washington, D.C.'s average car insurance cost is anticipated to jump to $4,088 after a staggering 18% increase in the previous year. The report outlined several states that experienced substantial premium increases in 2025:

• - New Jersey: Average cost rose from $2,488 to $2,983 (+20%), with a further projected increase to $3,024 (+1.4%).
• - Washington, D.C.: Average jumped from $3,399 to $4,017 (+18%), expected to reach $4,088 (+1.8%).
• - Rhode Island: Costs increased from $3,008 to $3,394 (+13%), with a projection of $3,450 in 2026 (+1.7%).
• - Michigan: Premiums rose from $2,742 to $3,073 (+12%), with a future estimate of $3,079 (+0.2%).
• - Georgia: Upsurge from $2,802 to $2,939 (+5%), projected to increase to $2,992 (+1.8%).

The increased rates can largely be attributed to several factors that are compounding the risk for insurance providers. Matt Brannon, a senior economic analyst at Insurify, pointed out that insurers must adapt to the escalating risks prevalent in overpopulated states, which tend to have higher living costs. This pattern is a direct result of more accidents and claims arising in these regions, which prompts insurers to adjust their rates to ensure profitability and sustainability.

In stark contrast to these rising costs found in several states, some places enjoyed reduced insurance rates due to their lower average premiums. For instance, Wyoming, recognized for its affordability in car insurance, observed a remarkable 30% decrease, bringing its annual average to merely $1,052.

In summary, while some regions hold out hope for stable or declining rates, drivers in areas already challenging affordability face daunting outlooks ahead. Insurify's report highlights this growing disparity in insurance costs, with a call to action for consumers to remain vigilant and informed as they navigate this evolving landscape.

About Insurify

Founded with the goal of empowering consumers, Insurify enables people to effortlessly compare, purchase, and manage various insurance policies. With over 500 partner integrations, Insurify has provided millions of insurance quotes and continues to innovate in the industry. Recently, they introduced Insurify Car, a unique liability-only policy with accessible payment options.

As this insurance study illustrates, understanding the anticipated rises in car insurance can help consumers prepare and find the best possible options for their needs.