Thirty-nine states saw auto insurance prices fall in 2025, but the most expensive places, including Washington, D.C., and New Jersey, got even pricier.
CAMBRIDGE, Mass., Feb. 3, 2026 /PRNewswire/ — Insurify, America’s top-rated online insurance agent, has released its 2026 Insuring the American Driver Report, which analyzes the emerging car insurance affordability gap across states.
Drawing from Insurify’s proprietary database of more than 190 million real auto insurance quotes, the platform’s data scientists found that car insurance became more affordable for many Americans in 2025. But 10 states logged premium increases in 2025, with some as high as $618 annually. Nationally, full-coverage auto insurance prices have increased 43% since 2021, even after falling 6% in 2025, with the average annual cost landing at $2,144.
Most states saw rates decrease or stabilize last year. But rate relief may not continue into 2026. Insurify projects that insurance costs in the most expensive areas of the country will continue ticking up in 2026. The average annual cost of full-coverage car insurance will increase by about 1% in 2026, to $2,158. However, rates in Washington, D.C., are expected to increase to $4,088, after prices surged 18% last year.
In 2025, four of the most costly states and Washington, D.C., bucked the national trend of price stability. The average cost of car insurance surged by at least $130 per year in:
|
State |
2024 Average Cost |
2025 Average |
Projected 2026 |
|
New Jersey |
$2,488 |
$2,983 (+20%) |
$3,024 (+1.4%) |
|
Washington, D.C. |
$3,399 |
$4,017 (+18%) |
$4,088 (+1.8%) |
|
Rhode Island |
$3,008 |
$3,394 (+13%) |
$3,450 (+1.7%) |
|
Michigan |
$2,742 |
$3,073 (+12%) |
$3,079 (+0.2%) |
|
Georgia |
$2,802 |
$2,939 (+5%) |
$2,992 (+1.8%) |
Data points to car insurance costs remaining stubbornly high in the most expensive states and more affordable in states where it’s already cheaper.
“Insurers have to respond to risk, and we’re seeing those risks compounding in crowded states that already have a high cost of living,” said Matt Brannon, Insurify senior economic analyst and author of the ADR. “In places like New Jersey, more crashes and claims happen, repairs are more expensive, and insurers raise rates to keep up.”
For example, New Jersey’s increases moved it higher on the list of most costly states for full-coverage car insurance, from No. 15 in 2024 to No. 6 in 2025.
In New York City, the average annual cost of full-coverage car insurance is 80% higher than the state average, ranging from $3,034 in Queens to $6,270 in the Bronx. And drivers in Washington, D.C., face more expensive car insurance than in all 50 states, averaging $4,017 annually, according to Insurify data.
Michigan’s 12% jump in full-coverage auto insurance pushed the Great Lakes State from the 12th most-expensive state in 2024 to the fourth most-expensive at the end of 2025. Michigan’s auto insurance costs ($3,073 annually) are now more expensive than rates in states with a high cost of living, like New York.
Meanwhile, car insurance costs fell throughout 2025 in many states that already enjoyed lower average premiums. For example, Wyoming, which was already one of the most inexpensive states, saw rates decrease by 30% by the end of the year. Its annual average cost of full-coverage car insurance sits at just $1,052, according to Insurify data.
About Insurify:
Insurify, America’s top-rated online insurance agent, empowers consumers to securely compare, buy, and manage their auto, home, pet, and renters insurance policies. With more than 500 insurance partner integrations, Insurify has served over 190 million insurance quotes and $200 billion in coverage while maintaining a no-spam policy. Powered by advanced AI, Insurify’s highly rated platform can help consumers save hundreds of dollars annually, often cutting their insurance bills in half. Insurance shoppers can choose to compare and buy policies online in just minutes or work with an expert insurance agent. In 2025, Insurify launched Insurify Car, a liability-only car insurance product that provides consumers with affordable weekly micropayments. Based in Cambridge, Massachusetts, Insurify has received numerous accolades, including being listed on the Inc. 5,000 Fastest-Growing Private Companies in America (2025), Boston Business Journal’s Fast 50 ( 2025), and CNBC’s World’s Top InsurTech Companies (2024).
For more information contact:
jessica.edmondson@insurify.com
Press@Insurify.com
https://insurify.com
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SOURCE INSURIFY, Inc.
