Thirty-nine states saw auto insurance prices fall in 2025, but the most expensive places, including Washington, D.C., and New Jersey, saw more increases

Cambridge, Mass.—Insurify has released its 2026 Insuring the American Driver Report, which analyzes the emerging car insurance affordability gap across states.

Drawing from Insurify’s database of more than 190 million auto insurance quotes, the platform’s data 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, 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:

Data points to car insurance costs remaining stubbornly high in the most expensive states and more affordable in states where it’s already cheaper.

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. 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.