The one-year pause in car insurance increases is ending.
Insurify’s mid-year analysis, reported by Fox Business on August 19, 2026, found the national average full-coverage premium rose 1% in the first half of 2026 to $2,237 a year. Twenty-seven states saw increases in the first six months, and Insurify expects 32 states to finish the year higher than they started.
That reverses 2025, when premiums fell 6% nationally and 39 states saw declines, the first broad relief for drivers in half a decade.
Why the drop stalled
“Unfortunately, this year, a majority of the states are trending up,” said Insurify CEO Snejina Zacharia. “Repair costs are a major driver.”
Repair costs are up 45%, according to the report. Modern bumpers, windshields and mirrors carry sensors and cameras that need recalibration after even minor collisions, and parts prices have not come down with inflation elsewhere. Severe weather losses, particularly hail, add to the pressure in the Plains and Southeast.
Where it is going up, and where it is not
- Connecticut is projected to rise 15% year over year, the largest increase in the country, and is up 67% over five years.
- Washington, D.C. fell 7% in the first half but remains the most expensive place to insure a car at $3,955 a year.
- New Mexico fell 6% in the first half and is projected to end the year down 8% at $1,587.
- New York and New Jersey each fell about 5% in the first half, to roughly $2,900.
The counterweight: money coming back
Two carriers are sending money the other way. State Farm Mutual began mailing a one-time $5 billion dividend to 2025 auto policyholders on July 31, worth 4% to 10% of last year’s premium on more than 49 million vehicles. In Florida, Sentry’s Dairyland announced a $30 million dividend and a 14% average rate cut on August 31, crediting the state’s 2023 tort reforms.
What to do at renewal
A 1% national average hides double-digit moves in both directions. If your renewal is up more than a few percent, get quotes from at least three carriers, ask about telematics discounts, and check whether raising your collision deductible from $500 to $1,000 changes the picture. Our car insurance ranking compares the major carriers on price, claims satisfaction and discounts.