2026 Auto Insurance Rate Outlook

Auto insurance premiums rose an average of 21% in 2024 and 13% in 2025. What is 2026 shaping up to look like?

The Short Version

Industry trackers project a 4–7% average increase for 2026 — the smallest year-over-year jump since 2022. But averages hide big state-by-state and driver-by-driver variation.

Where Increases Are Concentrating

• Florida, Louisiana, and California (weather + regulatory pressure)
• Urban centers in Texas, Georgia, and Arizona (theft and total-loss frequency)
• Drivers under 25 (structural loss-ratio pressure)

Where Rates May Actually Decrease

• Rural Midwest states with declining loss ratios
• Drivers over 55 with clean records
• Low-mileage drivers enrolled in telematics

What to Do

Even in a moderating-rate year, your specific renewal can still spike 10–20% if your carrier's book is stressed. Shop at every renewal — it is the only reliable defense.