Why is my car insurance going up?

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Car insurance rates rose sharply between 2022 and 2025, and they’re still climbing — just more slowly. The national average for full coverage hit $2,578 in 2026, up from $2,513 in 2025. That’s a 2% increase year over year, compared to the double-digit jumps many drivers experienced in previous years. The pace is easing, but most drivers will still see higher bills at renewal.

The reasons behind those increases fall into two categories: things happening in the broader market that affect everyone, and personal changes that signal higher risk to your insurer. Understanding which is driving your increase matters — because the right response is different depending on the cause.

💡 Most rate increases come down to one of two things — and knowing which one tells you exactly what to do.

Nothing changed on your end? The increase is almost certainly market-wide. Shopping around is your best move — get at least three quotes with identical coverage levels before your renewal date
Something did change — an accident, a ticket, a teen driver, a move — the increase is personal. Shopping still helps, but focus on insurers that are more forgiving of your specific situation
Either way, don’t auto-renew without comparing. Renewal is the one moment you have real leverage, and most drivers don’t use it

What are the biggest reasons car insurance rates have risen recently?

Car insurance has risen because claims have become more expensive to pay — and several forces have compounded over the past few years to push costs higher across the industry.

Repair costs and parts pricing. Modern vehicles cost significantly more to fix than they did five years ago. A rear-end collision that might have cost $1,500 to repair can now cost three times as much when radar sensors, cameras, and driver assistance components need replacing and recalibrating
Labor shortages. Repair shops face persistent staffing challenges and parts delays, meaning repairs take longer — and longer repairs mean longer rental car periods, which add to total claim costs
Larger injury settlements. Serious crashes generate hospital bills, extended recoveries, and legal expenses that can run into the hundreds of thousands. As injury claims have grown larger, insurers face higher loss costs across the board
Weather and climate risk. More frequent and intense storms, floods, and hail events have increased comprehensive claims in many regions — and insurers price that risk into premiums year-round, not just after a major event
Local claim patterns. If your area sees more accidents, theft, or weather losses, everyone insured there pays more regardless of their individual history
Statewide rate filings. Insurers periodically file for rate increases that apply to all policyholders in a state — regardless of driving record

“The biggest factor for premium increases is the driver’s history, such as any new accidents, tickets or claims,” says Lauren McKenzie, a senior agent with A Plus Insurance. “The second biggest is weather related claims and accidents.”

💡 Your zip code affects your premium more than most drivers realize — even within the same city

Insurers price by zip code based on local claim patterns, theft rates, and weather exposure. Two drivers with identical profiles living a few miles apart can pay meaningfully different premiums simply because of where their car is garaged overnight.

If you’ve recently moved — even locally — make sure your insurer has your correct garaging address. An incorrect address can cause problems at claim time and may be pricing you incorrectly.

Why did my car insurance go up even though I have a clean record?

A clean driving record protects you from surcharges — but it doesn’t insulate you from market-wide increases. Insurers price policies based on collective claim costs across all their policyholders, not just your individual history. If repair costs rise, injury claims get larger, or your state files for a rate increase, everyone pays more at renewal — clean record or not.

Here’s what can change behind the scenes even when your driving hasn’t:

Repair costs and parts pricing have increased. Advanced vehicle technology means even minor collisions generate expensive repair bills
Medical costs and injury settlements are larger. Serious crashes involve more expensive care and larger legal payouts than they did five years ago
Local claim frequency has risen. More crashes, weather losses, or theft in your area pushes up costs for everyone insured there
Your insurer filed for a statewide rate increase. These apply to all policyholders regardless of individual history
Your vehicle’s replacement cost has increased. The actual cash value of your car affects what insurers expect to pay if it’s totaled

💡 A statewide rate filing is one of the most common reasons for a surprise renewal increase — and most drivers never know it happened

Insurers file for rate adjustments with state regulators on a regular basis. When approved, those increases apply at the next renewal for every policyholder in the state — even those with spotless records.

If your rate jumped and nothing changed on your end, ask your insurer specifically whether a statewide rate filing contributed to the increase. That context helps you decide whether shopping around will actually help or whether everyone in your state is seeing similar increases.

Which personal changes raise your car insurance premium the most?

Personal risk factors can raise your premium quickly and significantly — often more than market-wide increases. Here are the changes that tend to have the biggest impact.

At-fault accidents. Rates go up by an average of 55% to 61% after a crash, and the impact typically persists for three to five years.
Speeding tickets. A single ticket can raise rates by 30% to 45% depending on the severity and your state.
DUI conviction. Rate increases after a DUI range from 50% to 150% or more, and the impact can last five to ten years in most states.
Adding a teen driver. Teen drivers increase car insurance rates by an average of 75%, making this one of the single most significant premium events a household can experience.
New vehicle with a higher replacement cost. A more expensive car costs more to insure — the gap between your old and new vehicle’s value flows directly into your collision and comprehensive premiums.
Relocating to a higher-cost area. Moving to a city or zip code with higher accident rates, theft, or weather risk will raise your premium even if your driving record is unchanged.
Increased mileage or a longer commute. More time on the road increases statistical exposure to accidents. A new job with a longer commute can affect your rate at renewal.
Credit score decline. In most states, insurers use credit-based insurance scores as a rating factor. A drop in your credit score can raise your premium even if your driving record is spotless.

💡 Adding a teen driver is one of the most significant premium events a household can face — and it’s worth preparing for

A 75% average increase on a $2,578 policy adds roughly $1,930 per year. That’s a meaningful financial shift, and it often catches parents off guard. Before adding a teen, get a quote so you know the actual number rather than estimating. Then shop competing insurers — rates for households with teen drivers vary significantly between carriers, and the difference between the most and least forgiving insurer for teen drivers can be hundreds of dollars per year.

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How much do accidents increase car insurance rates in each state?

A single at-fault accident raises rates by an average of 55% to 61% — but the impact varies significantly by state and by whether injuries were involved. Michigan, Connecticut, and California see some of the sharpest post-accident increases. The table below shows how rates change after one and two at-fault accidents across all the U.S.

A bodily injury accident typically triggers a larger increase than a property damage accident of similar severity, because injury claims involve medical costs, legal fees, and settlements that are harder to predict and cap.

State	Before accident	After 1 accident (property)	After 1 accident (injury)	After 2 accidents
Alaska	$2,167	$2,219	$3,329	$4,685
Alabama	$2,116	$2,179	$3,278	$4,666
Arkansas	$2,942	$3,085	$4,627	$6,411
Arizona	$2,420	$2,423	$3,456	$5,130
California	$3,444	$3,857	$6,969	$9,297
Colorado	$3,181	$3,118	$4,677	$6,359
Connecticut	$2,742	$3,006	$4,908	$10,988
Washington, D.C.	$3,465	$3,577	$5,867	$7,393
Delaware	$3,157	$3,260	$5,053	$7,007
Florida	$3,916	$3,877	$5,833	$7,640
Georgia	$2,503	$2,887	$4,331	$6,367
Hawaii	$1,757	$1,640	$2,460	$3,016
Iowa	$2,460	$2,595	$3,930	$5,090
Idaho	$1,901	$1,927	$2,900	$3,693
Illinois	$1,938	$2,029	$3,053	$4,238
Indiana	$1,894	$1,916	$2,882	$4,278
Kansas	$2,496	$2,416	$3,634	$4,859
Kentucky	$2,624	$2,639	$3,969	$5,031
Louisiana	$3,999	$3,929	$5,794	$8,504
Massachusetts	$2,429	$2,599	$3,943	$5,852
Maryland	$1,999	$2,180	$3,285	$4,481
Maine	$1,808	$1,901	$2,994	$4,226
Michigan	$3,964	$5,220	$7,934	$21,618
Minnesota	$2,591	$2,745	$4,130	$5,674
Missouri	$2,151	$2,157	$3,242	$4,663
Mississippi	$2,397	$2,359	$3,568	$4,858
Montana	$2,476	$2,381	$3,670	$4,787
North Carolina	$2,638	$2,745	$5,080	$5,331
North Dakota	$2,439	$2,431	$3,646	$4,931
Nebraska	$2,095	$2,219	$3,328	$4,316
New Hampshire	$1,689	$1,811	$2,740	$3,833
New Jersey	$3,122	$3,579	$5,603	$8,962
New Mexico	$2,577	$2,565	$3,852	$5,200
Nevada	$3,963	$3,762	$5,864	$9,053
New York	$2,596	$2,464	$3,857	$4,918
Ohio	$1,783	$1,733	$2,615	$3,619
Oklahoma	$2,993	$2,849	$4,273	$5,704
Oregon	$2,048	$2,052	$3,188	$4,195
Pennsylvania	$2,327	$2,133	$3,602	$4,872
Rhode Island	$2,878	$2,503	$4,202	$4,463
South Carolina	$2,417	$2,504	$3,766	$4,811
South Dakota	$2,575	$2,609	$4,012	$4,903
Tennessee	$2,235	$2,549	$3,824	$5,139
Texas	$3,106	$3,817	$6,286	$9,067
Utah	$2,356	$2,356	$3,726	$5,124
Virginia	$1,835	$1,994	$3,282	$4,373
Vermont	$1,660	$1,652	$2,455	$3,423
Washington	$2,389	$2,439	$3,671	$5,013
Wisconsin	$2,343	$2,335	$3,565	$5,041
West Virginia	$2,415	$2,433	$3,763	$5,320
Wyoming	$2,061	$1,895	$2,843	$3,640

💡 The best time to protect yourself from a bodily injury claim is before an accident happens — here’s how

Bodily injury claims are far more expensive than property damage claims because medical costs, legal fees, and settlements are unpredictable and can escalate over time. The rate increases in the table above reflect that reality. To protect yourself before anything goes wrong, make sure your bodily injury liability limits are genuinely sufficient — not just the state minimum. A 100/300 limit ($100,000 per person, $300,000 per accident) is a reasonable baseline for most drivers. If your net worth is significant, consider higher limits or an umbrella policy on top.

And if you don’t already have uninsured motorist coverage, add it — if someone with low limits injures you, it’s what fills the gap.

Why does where you live affect car insurance so much?

Location influences your premium because insurers price policies based on local claim patterns — traffic density, theft rates, weather losses, medical costs, and litigation all vary significantly by state and city. If your state’s overall claims environment is getting more expensive, your rate can rise even if your personal driving record is unchanged.

The table below shows how average full coverage premiums have changed by state from 2022 to 2026 — a period that saw significant increases nationally but with very different trajectories depending on location.

State	2022	2023	2025	2026
Alaska	$1,256	$1,676	$2,215	$2,167
Alabama	$1,519	$1,860	$2,107	$2,116
Arkansas	$1,376	$1,957	$2,723	$2,942
Arizona	$1,477	$1,812	$2,333	$2,420
California	$2,133	$2,416	$3,010	$3,444
Colorado	$1,858	$2,337	$3,222	$3,181
Connecticut	$1,401	$1,725	$2,726	$2,742
Washington, D.C.	$1,724	$2,157	$3,394	$3,465
Delaware	$1,950	$2,063	$3,097	$3,157
Florida	$2,597	$2,694	$3,852	$3,916
Georgia	$1,619	$1,970	$2,739	$2,503
Hawaii	$1,306	$1,517	$1,721	$1,757
Iowa	$1,249	$1,630	$2,228	$2,460
Idaho	$1,101	$1,428	$1,791	$1,901
Illinois	$1,321	$1,532	$1,901	$1,938
Indiana	$1,208	$1,515	$1,856	$1,894
Kansas	$1,531	$1,900	$2,410	$2,496
Kentucky	$1,852	$2,228	$2,976	$2,624
Louisiana	$2,523	$2,883	$4,180	$3,999
Massachusetts	$1,532	$1,726	$2,430	$2,429
Maryland	$1,467	$1,746	$2,273	$1,999
Maine	$1,047	$1,175	$1,701	$1,808
Michigan	$1,984	$2,352	$3,146	$3,964
Minnesota	$1,414	$1,911	$2,561	$2,591
Missouri	$1,744	$1,982	$2,410	$2,151
Mississippi	$1,575	$2,008	$2,455	$2,397
Montana	$1,692	$2,193	$2,541	$2,476
North Carolina	$1,367	$1,741	$2,587	$2,638
North Dakota	$1,278	$1,665	$2,079	$2,439
Nebraska	$1,643	$1,902	$2,387	$2,095
New Hampshire	$1,031	$1,265	$1,650	$1,689
New Jersey	$1,752	$1,902	$2,736	$3,122
New Mexico	$1,491	$2,049	$2,486	$2,577
Nevada	$2,002	$2,060	$3,284	$3,963
New York	$1,767	$1,870	$2,898	$2,596
Ohio	$1,013	$1,417	$1,739	$1,783
Oklahoma	$1,798	$2,138	$2,705	$2,993
Oregon	$1,270	$1,678	$1,927	$2,048
Pennsylvania	$1,272	$1,872	$2,428	$2,327
Rhode Island	$1,654	$2,061	$2,706	$2,878
South Carolina	$1,595	$2,009	$2,367	$2,417
South Dakota	$1,551	$2,280	$2,635	$2,575
Tennessee	$1,366	$1,677	$2,214	$2,235
Texas	$1,857	$2,043	$2,631	$3,106
Utah	$1,477	$1,825	$2,250	$2,356
Virginia	$1,143	$1,469	$1,837	$1,835
Vermont	$1,135	$1,319	$1,504	$1,660
Washington	$1,213	$1,608	$2,175	$2,389
Wisconsin	$1,315	$1,664	$2,026	$2,343
West Virginia	$1,606	$2,005	$2,557	$2,415
Wyoming	$1,685	$1,758	$1,984	$2,061

💡 Some states have seen premiums more than double since 2022 — and others have barely moved

Nevada went from $2,002 in 2022 to $3,963 in 2026 — a 98% increase in four years. Michigan climbed from $1,984 to $3,964. Meanwhile, states like Vermont and New Hampshire have seen much more modest increases. If you’ve moved between states in recent years, part of your premium change may simply reflect the difference between two markets rather than anything about your personal profile. And if you’re in a high-growth state, the case for shopping aggressively at every renewal is even stronger.

Do some insurance companies raise rates more than others?

Insurers have their own pricing algorithms and rate-filing strategies, so the same driver can see very different premiums — and very different rate increases — depending on which company they’re with. That’s why shopping at renewal can produce meaningful savings even when your personal profile hasn’t changed.

“Each company has different niches, so rates may be astronomically high with one for a particular driver and vehicle, but maybe they are not favorable to that type of driver or their vehicle,” says McKenzie. “Whereas another company may specialize in insuring high risk drivers, or they may prefer low risk drivers.”

The table below shows average annual full coverage premiums by insurer from 2022 to 2026.

Company	2022	2023	2025	2026
Allstate	$2,048	$2,509	$3,205	$3,159
Farmers	$1,902	$2,387	$3,085	$3,207
GEICO	$1,265	$1,763	$2,148	$2,159
Nationwide	$1,206	$1,548	$2,463	$2,524
Progressive	$1,683	$1,998	$2,675	$2,569
State Farm	$1,404	$1,984	$2,874	$2,875
Travelers	$1,468	$1,606	$2,103	$1,962
USAA*	$1,181	$1,381	$1,572	$1,628

*USAA is only available to military community members and their families.

💡 When shopping for coverage, compare policies with identical coverage levels — not just the headline premium

A quote that looks $300 cheaper may carry lower liability limits, a higher deductible, or fewer coverages. To make a fair comparison, use the same liability limits (100/300/100 is a reasonable baseline for most drivers), the same deductible, and the same add-ons across every quote.

An apples-to-apples comparison tells you whether a lower price represents a genuine saving or a coverage reduction.

How can you tell what caused your rate increase?

The fastest way to diagnose a rate hike is to compare your current declarations page to your previous renewal side by side. Most of the information you need is already in your policy documents — you just need to know where to look.

Compare the premium breakdown line by line. Look for changes in each coverage component — liability, collision, comprehensive — to identify where the increase is concentrated.
Confirm your coverages didn’t change automatically. Some insurers quietly adjust limits or add optional coverages at renewal. Make sure you’re paying for what you chose.
Check your driver list and vehicle assignments. Verify that all listed drivers are correct and that each vehicle is assigned accurately.
Ask your insurer whether a statewide rate increase applied. If one did, that’s market-wide — and whether to stay or switch is a different decision than if your personal risk factors changed.
Confirm your mileage and garaging zip code are correct. An error in either can result in you being priced incorrectly — in either direction.

What can you do right now to lower your car insurance rate?

Most drivers have more control over their premium than they realize. The most effective strategies are usually simpler and more accessible than people expect — and the biggest savings come from doing a few of them in combination.

Shop around before your renewal date

Shopping is often the most effective lever available, because insurers price the same risk profile differently. Get at least three quotes using identical coverage levels, deductibles, and limits. Even if you’d prefer to stay with your current insurer, competitor quotes give you leverage to negotiate and confirm whether your current price still makes sense.

💡 Set a calendar reminder 60 days before your renewal — that’s your window to shop

60 days gives you enough time to get multiple quotes, compare them properly, and make a deliberate decision rather than defaulting to renewal.

You want your new coverage to start the day your old one ends with no gap. If you wait until the renewal notice arrives, you’re often left with less time than you need to do this properly.

Stack discounts you may be missing

Discounts can meaningfully reduce premiums, especially when combined. Ask your insurer for a full discount review before your next renewal.

Bundling discount. Combining home or renters insurance with your auto policy can save up to 25% — one of the most reliable and largest discounts available.
Safe driver discount. A clean record over time typically earns ongoing savings. Some insurers also offer a defensive driving course discount.
Usage-based insurance (telematics). Programs that track driving behavior can earn 10% to 30% discounts for safe habits — without any change to your coverage.
Good student discount. For households with teen drivers, a GPA of B or above typically qualifies.
Multi-car discount. Insuring multiple vehicles on the same policy usually earns a discount on each.
Pay-in-full discount. Paying your annual premium upfront rather than monthly eliminates installment fees and often earns a discount.

Raise your deductible carefully

A higher deductible reduces your premium because you’re absorbing more out-of-pocket risk if you file a claim. Going from $500 to $1,000 typically saves around 11%. This is a smart move if your emergency fund can comfortably cover the higher deductible — but not if it would create financial strain to come up with the money after an accident.

Review your coverage on older vehicles

If your car’s market value has dropped significantly, carrying collision and comprehensive coverage may no longer be cost-effective. A useful guideline: if the combined annual cost of those coverages exceeds 10% of the car’s actual cash value, dropping them may make financial sense. Check your car’s current value on Kelley Blue Book before your next renewal.

💡 Improving your credit score is one of the most underused levers for lowering your premium

In most states, insurers use credit-based insurance scores as a pricing factor — and the impact is significant. Drivers with poor credit can pay substantially more than drivers with excellent credit for identical coverage. If your credit has improved since you last shopped, that improvement should be reflected in new quotes. Asking your current insurer to re-rate your policy based on an updated credit score is worth the conversation.

Should you switch car insurance companies after a rate hike?

Switching makes sense when you can find the same coverage at a meaningfully lower rate — but a few things matter before you act.

Don’t cancel your existing policy until a new one is in place. A coverage gap of even one day can result in higher rates with future insurers and leaves you unprotected in the interim
Compare price and the insurer’s claims experience. The cheapest option isn’t always the best if it comes with poor service when you actually need it. Check financial strength ratings and customer reviews alongside the premium
Make sure you’re comparing identical coverage. The same liability limits, deductible, and add-ons across every quote — otherwise you’re not making a fair comparison

Read more about the How to lower your auto insurance.

What our expert says

Q: What’s a good way to save on car insurance?

Carole WalkerExecutive director of the Rocky Mountain Insurance Information Association.

“Ask your insurer about all available discounts. Discounts are available for everything from vehicle safety to higher deductibles and bundling.”

Frequently asked questions

Why is my car insurance so high with a clean record?

A clean driving record protects you from personal surcharges, but it doesn’t shield you from market-wide increases. Rising repair costs, larger injury settlements, more severe weather events, and statewide rate filings by your insurer can all push your premium higher without any change to your driving history. Insurers price policies based on the collective cost of all claims in their portfolio, not just your individual history.

Why did my insurance go up for no reason?

The most common causes are a statewide rate filing by your insurer, rising claim costs in your area, or an increase in local accident or theft frequency. You may also have had a change you didn’t notice — a slight mileage increase, an updated credit score, or a vehicle value adjustment. Pull your declarations page and compare it line by line to last year’s to identify where the change occurred.

How often do car insurance rates change?

Rates typically update at each renewal — every six or twelve months depending on your policy term. Insurers can also file for mid-term rate adjustments with state regulators, though these are less common. Personal changes like accidents, new drivers, or vehicle changes can trigger an immediate recalculation.

Will my rate go down if I don’t file any claims?

Not necessarily. Even without any claims, your rate can increase due to market-wide factors like rising repair costs, inflation, or higher claim frequency in your area. However, a clean record over time does typically earn ongoing safe driver discounts and makes you a more attractive risk to competing insurers. The longer your clean history, the more leverage you have when shopping around.

Is it better to raise my deductible or switch companies?

Start by shopping around — you may save more by switching companies than by adjusting your deductible, and switching doesn’t require you to take on more out-of-pocket risk. If you’ve shopped and your current insurer is genuinely competitive, then raising your deductible is a reasonable next step. Going from $500 to $1,000 typically saves around 11%, which on a $2,578 average policy is about $283 per year. Only take this step if your emergency fund can comfortably absorb the higher deductible.

Kat Tretina

Kat Tretina is an insurance expert and freelance writer specializing in personal finance and insurance. Her work has appeared in top publications like U.S. News, Money.com and The Wall Street Journal’s Buy Side. She helps readers make informed decisions about money, budgeting and car insurance.

On this page

What are the biggest reasons car insurance rates have risen recently?
Why did my car insurance go up even though I have a clean record?
Which personal changes raise your car insurance premium the most?
How much do accidents increase car insurance rates in each state?
Why does where you live affect car insurance so much?
Do some insurance companies raise rates more than others?
How can you tell what caused your rate increase?
What can you do right now to lower your car insurance rate?
Should you switch car insurance companies after a rate hike?
Frequently asked questions