American drivers got something they have not had in several years: a month with no increase.
The national average for full-coverage car insurance held steady at $186 a month through June, according to Insurify’s July 2026 rate tracking. The national average liability-only rate was also unchanged at $98 a month.
Rates have been declining through 2026 after a prolonged run of increases, though the decline flattened out last month.
The Outlook Is Modest, Not Falling
Insurify’s analysts expect rates to rise by roughly 1% by the end of 2026. That is materially different from the double-digit annual increases drivers absorbed in the preceding years, but it is not a reversal — the expectation is stabilisation at a high level rather than a return to prior pricing.
The underlying cost drivers have not gone away. Vehicle repair remains expensive because modern bumpers and windscreens carry sensors and cameras that require calibration after a collision. Medical and litigation costs on injury claims continue to climb.
What has changed is that the rate increases filed in 2024 have now flowed through into earned premium, restoring underwriting profitability — personal auto insurers posted $28.9 billion in net underwriting income in 2025, more than double the prior year. Profitable lines compete harder, and competition is what flattens rates.
Where You Live Still Decides Most of It
The national average conceals enormous geographic variation.
- Maryland and Rhode Island remain the most expensive states in the country for car insurance
- New Hampshire remains the cheapest, with rates well below the national average
Insurify identifies Country Financial as the cheapest carrier nationally, with liability premiums starting around $42 a month — a reminder that regional and mutual insurers frequently undercut the national brands in their home markets.
What Drivers Should Do With This
A flat market is the best time to shop, not the worst. When rates are rising quickly, every quote you collect is stale within weeks. When they stabilise, the spread between carriers becomes the dominant variable — and that spread is routinely 50% or more for the same driver on the same vehicle with the same coverage.
Three things worth doing before your next renewal:
- Collect quotes from at least five carriers, including one regional insurer. Match coverage limits, not premiums.
- Update your annual mileage if you drive less than you used to. Low-mileage discounts are frequently unclaimed because nobody revises the estimate after a job change.
- Re-check your liability limits. State minimums remain dangerously low almost everywhere, and moving from minimum to 100/300/100 usually costs far less than drivers expect.
Loyalty is not rewarded in auto insurance. In many states, long-tenured customers quietly pay more than new ones.
Source: Insurify, “Average Car Insurance Rates as of July 2026.”
For setting your limits properly, see how much car insurance you actually need.