What happened to premiums
Insurify's latest look at the market says the 2025 cooldown was real: average auto premiums fell 6% last year, and drivers in 39 states paid less for full coverage. That soft patch didn't last. Across the opening six months of 2026, average full-coverage costs rose 1% to $2,237, with gains already recorded in 27 states. By year end, the firm projects 32 states will show increases.
Insurify CEO Snejina Zacharia put it plainly in a FOX Business interview: "Unfortunately, this year, a majority of the states are trending up."
Why the turn
Zacharia pointed to stubbornly costly storms and serious crashes, and said the industry has "seen a 45% increase in repair costs." She linked the run-up in repairs to pressures that started years ago with the pandemic and chip shortages, and said they have continued alongside broader inflation and tariffs on auto parts. Those costs flow through claims, so insurers are recalibrating prices by state.
Another wrinkle: some of the biggest jumps in 2026 are hitting places that used to be relatively cheap to insure. West Virginia, for instance, notched a roughly 5% rise over the year's first half. Kentucky drivers, meanwhile, went from about $58 under the national average to roughly $65 above it.
Insurify expects both Kentucky and West Virginia to be up 8% year over year by December. And the steepest 2026 move on Insurify's board is Connecticut, which the firm expects to climb 15% this year; looking back five years, Connecticut's rates are up 67%. As Zacharia put it, "the majority of the states unfortunately have seen dramatic increases across the board."
Insurance is one of the stickiest line items in a household budget, and it rarely falls for long. Market Briefs tracks what drives premiums free every weekday.
Where prices fell
There were some bright spots. Washington, D.C., saw the biggest midyear drop at 7%, and forecasts indicate it will close 2026 roughly 5% below the prior year. It still holds the top spot for the priciest coverage, with an average full-coverage tab of $3,955, and Insurify ties D.C.'s drop to fewer auto thefts and fatal crashes.
New Mexico's average premium slipped about 6% in the first half and is expected to be down 8% for the full year, with a projected average of $1,587. New York and New Jersey each eased roughly 5% in the first half and are on track to close 2026 about 4% below last year, with totals near $2,900 apiece.
How drivers can try to save
Zacharia said consumers can sometimes lower their bill by tweaking coverage. "For example, if your vehicle is so old that the cost to insure it is almost more expensive than the cost to replace the vehicle, you probably don't need comprehensive and collision insurance because you will be paying almost as much year over year as your total vehicle cost." She also urged comparison shopping: "Every carrier will have different discounts for the customer," and loyalty does not always translate to a better price. With rates fluctuating widely, she said, "you will never know how much is your fair rate or what is your best deal on your car insurance unless you have given yourself the ability to make that comparison apples-to-apples across top providers and some regional ones."
For context, Insurify says its platform pulls discount options from 120 auto insurers and can surface individualized quotes. For your wallet, the takeaway is simple: when the environment shifts this fast, checking your options and your coverage details can matter more than you think.
When rates turn higher across most of the country, it shows up in real spending power. Get Market Briefs free each morning and stay ahead of your renewal.
