Car insurance costs are climbing again after a period of relative relief in 2025. The average annual price of full-coverage auto insurance reached $2,237 nationwide during the first half of 2026, according to Insurify, which expects the average to reach $2,242 by year-end. Rates are projected to increase in 32 states.
The increases vary significantly by state. Pennsylvania drivers are paying an average of $1,930 a year, up 2.3% so far in 2026, while Delaware remains among the most expensive states at $3,100 annually. New Jersey is an exception, with average premiums falling 5.3% to $2,923 during the first half of the year.
Rising vehicle repair and maintenance costs are putting additional pressure on insurers. Auto repair and maintenance expenses have increased 45% over the past five years, roughly twice the overall inflation rate. Insurify found that 27 states recorded insurance increases during the first half of 2026.
Drivers can still reduce their premiums by comparing at least three to five insurers, bundling policies, considering a higher deductible, and asking about available discounts. According to the Insurance Information Institute, increasing a deductible from $200 to $500 can reduce premiums by 15% to 30% in some cases, although drivers should only choose a deductible they could comfortably afford after an accident.
