2026 Auto Insurance Rates Report

Car Insurance Insights from Written Premium Data

After several years of sustained increases, auto insurance rate momentum moderated during 2025. Following a period of accelerated pricing adjustments across many markets, overall conditions began to stabilize, though variation across states remains pronounced.

This report is based on written premium (WP) data derived from active, issued personal auto insurance policies. Unlike quote-request datasets or filed rate models, written premium data reflects finalized transactions under actual underwriting conditions. As a result, the analysis captures realized market pricing rather than estimated or proposed rates.

Auto Insurance Costs Eased in 2025, But Regional Gaps Persist in 2026

While national trends indicate moderation, pricing conditions remain uneven. Structural risk factors — including claim severity, repair and medical cost trends, litigation environments, weather exposure, and regulatory dynamics — continue to influence regional outcomes.

As 2026 unfolds, overall rate movement appears more tempered than in prior years, though affordability continues to vary meaningfully by geography.

Are Car Insurance Rates Going Up in 2026?

To evaluate rate direction in 2026, it is necessary to review pricing patterns over the prior several years. Auto insurance premiums accelerated between 2023 and 2024, driven by higher claims severity, rising repair and medical costs, inflationary pressures, and elevated weather-related losses. Carriers implemented substantial pricing adjustments during that period to address sustained loss activity.

During 2025, rate momentum moderated. Written premium data indicates that pricing shifted from rapid acceleration toward stabilization in many regions. While conditions varied by state, the overall pace of change slowed compared to prior years.

Pricing entered 2026 on a moderated trajectory rather than continuing the accelerated increases observed in earlier periods.

Understanding the Auto Insurance Premium Decline

Several factors contributed to the moderation in car insurance premiums during 2025. Following multiple years of rate increases, many carriers had adjusted pricing to better reflect higher claims severity, repair costs, and loss trends. As rate adequacy improved, the pace of additional increases slowed in many markets.

Written premium (WP) data from observed Freeway policies indicates that rate reductions were most pronounced among lower-risk drivers, particularly those with clean driving histories. In mid-2025, a subset of policyholders experienced premium decreases in the range of 10–15%, with pricing trends stabilizing toward the end of the year.

While not universal across all states or risk profiles, the overall data suggests that pricing pressure eased in many markets entering 2026.

How Did Car Insurance Prices Compare from Q4 2025 to Q4 2024?

Quarterly averages of monthly personal auto insurance costs per policy, calculated using annualized written premium (WP), show measurable softening from 2024 to 2025.

While 2024 remained elevated across most quarters, 2025 reflected gradual easing, particularly in the second half of the year. By Q4 2025, average monthly premiums were lower than Q4 2024 levels, establishing a more moderate baseline entering 2026.

Which States Had the Highest and Lowest Variance from 2024 to 2025

State-level written premium data reveals meaningful geographic variation in both overall premium levels and year-over-year movement.

Based on median full-coverage premiums from observed policies:

While these figures reflect absolute premium levels, year-over-year movement provides insight into rate momentum. A state experiencing a decrease may still maintain higher overall premiums than a state recording an increase. The variance reflected here represents pricing movement rather than affordability rankings.

These shifts form the regional baseline influencing 2026 market conditions.

Premium differences across states reflect structural risk factors that influence claims frequency and severity. Within states, localized market conditions — including population density and repair cost exposure — also contribute to variation.

How Have Costs Changed for Each Type of Coverage?

To further evaluate 2026 rate conditions, pricing behavior across major coverage types was reviewed.

Full Coverage Insurance Cost

Full coverage premiums remained elevated throughout 2024, with pricing fluctuating within a consistently high range. During 2025, premiums moderated gradually, particularly in the second half of the year. By year-end 2025, full coverage costs were below prior-year levels, reflecting easing within this segment.

Liability-Only Insurance Cost

Liability-only coverage demonstrated clearer year-over-year softening. Monthly costs in 2025 declined across most months compared to 2024, with reduced volatility entering year-end.

This segment also entered 2026 at moderate levels relative to the prior year.

2026 Insurance Rate Changes Summary

Written premium data indicates that auto insurance pricing entered 2026 at a moderate level relative to the accelerated increases observed in earlier years. While stabilization is evident in many regions, pricing conditions remain uneven due to structural cost differences and localized risk exposure.

The 2024–2025 transition period established the baseline from which current market dynamics are evolving. Geographic variation remains a defining characteristic of the 2026 auto insurance environment.

Methodology

This report is based on aggregated written premium (WP) data derived from 1.57 million issued personal auto insurance policies from January 2024 – December 2025. The analysis reflects realized policy outcomes rather than quoted rates and excludes commercial auto products.

For a detailed explanation of data sources, coverage definitions, and analytical methodology, please visit our Data Methodology page.