The 10 States Where Auto Insurance Is Rising the Fastest
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States with severe weather, higher repair costs, increased vehicle theft and rising litigation tend to see the highest car insurance rates in the country. But which states are experiencing the fastest increases right now?
Using actual customer policy data from Freeway Insurance customers, this article highlights the 10 states where auto insurance rates are rising the fastest and explores the factors contributing to higher costs for drivers.
Car insurance remains essential financial protection helping drivers cover vehicle damage, medical expenses, liability claims, and other unexpected costs after an accident. However, rising premiums are creating additional financial pressure for many households across the country.
The findings are based on written premium included in the Freeway Insurance 2026 Auto Insurance Rates Report, which analyzes trends using actual policies purchased under real underwriting conditions rather than quoted estimates.
Despite rising costs across the industry, Freeway Insurance continues to help drivers compare coverage options from multiple carriers, including solutions for non-standard drivers, SR-22 insurance needs, and customers with accidents or violations on their records.
Table: States Where Freeway Customers are Experiencing the Highest Rate Rise in 2026
This table, which contains data from actual Freeway Insurance written policies, shows year-over-year increases for the 10 states with the fastest-rising car insurance prices.
| States | 2025Q1 | 2025Q2 | 2025Q3 | 2025Q4 | 2026Q1 | 2026vs2025 | Avg |
| Vermont | $87.51 | $117.02 | $90.68 | $130.02 | $96.68 | 10% | 27% |
| Hawaii | $84.44 | $106.61 | $101.99 | $101.52 | $111.35 | 32% | 14% |
| New Jersey | $172.28 | $170.57 | $172.71 | $173.24 | $184.92 | 7% | 9% |
| Kansas | $118.53 | $116.38 | $119.15 | $121.71 | $123.02 | 4% | 8% |
| Montana | $139.53 | $111.03 | $107.52 | $123.46 | $127.99 | -8% | 8% |
| Georgia | $236.39 | $230.85 | $228.67 | $220.38 | $219.99 | -7% | 8% |
| Nevada | $213.77 | $217.93 | $215.13 | $212.03 | $218.97 | 2% | 6% |
| Washington | $186.08 | $179.48 | $182.08 | $182.79 | $183.03 | -2% | 6% |
| Maine | $123.10 | $129.26 | $123.46 | $124.42 | $133.09 | 8% | 6% |
| Idaho | $129.88 | $125.37 | $123.35 | $122.00 | $121.45 | -6% | 5% |
*States ranked based on the average year-over-year change in first-quarter premiums, comparing 2025 vs 2024 and 2026 vs 2025. Fastest rising reflects the highest average year-over-year growth, with additional context on whether increases were consistent across both years.
When costs rise due to factors like severe weather, litigation, or medical expenses, an insurance company typically passes those increases on to policyholders through higher premiums.
State-by-State Look at the Fastest-Rising Auto Insurance Costs
Understanding local factors—laws, claim patterns, and weather—helps explain the sticker shock where you live.
1. Vermont: Harsh Winter Weather
Vermont car insurance rates are climbing due to a combination of harsh winter driving conditions, costly weather-related claims, rising repair expenses for high-tech vehicles, and a high rate of deer collisions. Inflation and increasing labor and medical costs are also contributing to higher premiums statewide.
From the first quarter of 2024 to the first quarter of 2026, rates rose by an average of 27%.
2. Hawaii: High COLA and No-Fault PIP
Hawaii car insurance rates are rising due to expensive vehicle repair and shipping costs, limited insurer competition, growing weather-related risks, and higher claims tied to advanced vehicle technology. Honolulu’s traffic congestion and theft rates, along with Hawaii’s mandatory no-fault insurance requirements, also contribute to higher premiums statewide.
From the first quarter of 2024 to the first quarter of 2026, rates rose by an average of 14%.
3. New Jersey: Dense Traffic and High Medical Costs
New Jersey car insurance rates are rising due to heavy traffic congestion, costly no-fault insurance requirements, increasing vehicle repair expenses, and growing medical and legal claim costs. Litigation, insurance fraud, inflation, and weather-related claims are also putting upward pressure on premiums statewide.
From the first quarter of 2024 to the first quarter of 2026, rates rose by an average of 9%.
4. Kansas: Weather and Theft
Kansas car insurance rates are rising largely due to costly severe weather claims from hail, tornadoes, and flooding, along with increasing vehicle repair and medical costs. Rural highway risks, inflation, and growing theft-related claims are also contributing to higher premiums statewide.
From the first quarter of 2024 to the first quarter of 2026, rates rose by an average of 8%.
5. Montana: Weather and Wildlife Collisions
Montana car insurance rates are rising due to severe winter driving conditions, frequent wildlife collisions, and costly weather-related claims. Higher repair, medical, and labor costs, along with the risks associated with rural high-speed driving, are also driving premiums upward statewide.
From the first quarter of 2024 to the first quarter of 2026, rates rose by an average of 8%.
6. Georgia: Traffic Congestion and Weather
Georgia car insurance rates are rising due to heavy traffic congestion, high uninsured driver rates, increasing vehicle theft, and costly weather-related claims. Higher repair, medical, and legal expenses — especially in the Atlanta metro area — are also pushing premiums upward statewide.
From the first quarter of 2024 to the first quarter of 2026, rates rose by an average of 8%.
7. Nevada: Rapid Population Growth and Tourists
Nevada car insurance rates are rising due to growing traffic congestion, high uninsured driver and vehicle theft rates, and increased accident risk tied to tourism and urban growth. Rising repair, medical, and legal costs — especially in Las Vegas — are also contributing to higher premiums statewide.
From the first quarter of 2024 to the first quarter of 2026, rates rose by an average of 6%.
8. Washington: Traffic Congestion and Theft
Washington car insurance rates are rising due to traffic congestion, increasing vehicle theft, and costly weather-related claims. Higher repair, medical, and labor costs — especially in the Seattle metro area — are also contributing to higher premiums statewide.
From the first quarter of 2024 to the first quarter of 2026, rates rose by an average of 6%.
9. Maine: Harsh Winters and Wildlife Collisions
Maine car insurance rates are rising due to harsh winter driving conditions, frequent deer collisions, and increasing weather-related claims. Higher repair, medical, and labor costs, along with the risks associated with rural driving, are also contributing to higher premiums statewide.
From the first quarter of 2024 to the first quarter of 2026, rates rose by an average of 6%.
10. Idaho: Wildfire and Uninsured Drivers
Idaho car insurance rates are rising due to rapid population growth, worsening traffic congestion, and severe winter driving conditions. Increasing wildfire and weather-related claims, along with higher repair, medical, and labor costs, are also contributing to higher premiums statewide.
From the first quarter of 2024 to the first quarter of 2026, rates rose by an average of 5%.
Why Auto Insurance Is Rising So Fast in These States
While every state differs, several factors push costs higher everywhere:
- More expensive vehicles and parts: New car prices rose 40% since 2020, with chips and labor up 30%. Modern vehicles packed with advanced technology incur higher repair and labor costs, driving up auto insurance premiums significantly.
- Higher medical bills and legal costs: Litigation increased 25%, medical expenses climb 15% annually, contributing to higher costs.
- More frequent severe weather: Catastrophes exceeded $100B in losses recently, according to Risk & Insurance.
- Increased accidents: Higher accident frequency driven by distracted driving and increased traffic congestion continues to put upward pressure on auto insurance rates.
Insurers must file and justify rate increases with state regulators, so premium hikes often lag behind actual claim cost spikes. This means recent losses are still driving current adjustments. Even safe drivers are affected by overall claim trends, but the types of coverage you carry, such as collision or comprehensive (often required by your lender if your vehicle is financed or leased), and whether you are involved in a covered accident, can influence your rate. Shopping around, considering insurance costs before a vehicle purchase, customizing your insurance plan to fit your needs, and choosing flexible payment options can all help manage affordability.
What Drivers Can Do to Lower Auto Insurance Costs
You can’t control state-level trends, but these tactics help manage your premium:
- Shop and compare: Quote shopping saves 20%–30% on average. Look for insurers offering flexible payment options, including low down payments, to make coverage more affordable.
- Adjust deductibles: Raising to $1,000 can save 15%+ on premiums
- Review coverage: Drop full coverage on older vehicles when appropriate
- Improve credit: Where legal, credit affects rates by up to 40%
- Maintain clean records: Accidents and tickets trigger surcharges
When choosing an insurer, consider the company’s reputation and stability in the business to ensure you’re working with a reliable provider.
Consider usage-based or telematics programs if you’re a low-mileage or safe driver—savings can reach 25%. Ask about common discounts: multi-car, multi-policy bundling with renters or homeowners insurance, good student, paid-in-full, and defensive driving course savings.
Cutting liability limits too aggressively is risky. After a serious crash, inadequate coverage can leave you responsible for medical bills and damages you can’t afford.
For added peace of mind, choose a provider known for excellent customer service, including 24/7 claims assistance and roadside help. Many insurers now make it easy to report claims through their website or mobile app, streamlining the process for policyholders.
How Freeway Insurance Helps Drivers in High-Cost States
Freeway Insurance works with a wide network of insurance carriers, including companies specializing in non-standard and high-risk drivers. High-risk drivers often face challenges in obtaining insurance, as many traditional insurers may refuse coverage due to factors like a poor driving record or a history of lapses in insurance. In many cases, high-risk drivers may be required to obtain an SR-22 certificate, which proves they carry the minimum required insurance coverage, often mandated by the state after certain violations. This access proves especially valuable in states with rapidly rising rates or specific regulations—such as Washington—where standard insurers may decline coverage or charge higher amounts.
Freeway offers multiple ways to shop—online, by phone, or at a local office—with bilingual (English/Spanish) agents available in many locations. Beyond standard auto, Freeway handles SR-22 filings, rideshare coverage, and bundling options with renters or homeowners insurance for additional savings. Get a fast, free quote for car insurance online, give us a call at 800-777-5620 or visit us at one of our many convenient locations.
Frequently Asked Questions
Why are auto insurance rates rising so quickly in certain states?
Auto insurance rates are rising rapidly in some states due to a combination of factors such as severe weather events (hurricanes, hail, wildfires), increased litigation and legal costs, higher medical and repair expenses, population growth leading to more traffic, and elevated accident and theft rates.
How can I find affordable auto insurance if I live in a state with rising premiums?
Shopping around and comparing quotes from multiple insurers is key. Consider working with agencies like Freeway Insurance that specialize in offering options for high-risk drivers and provide discounts for safe driving, bundling policies, and more. Adjusting deductibles and coverage limits can also help lower costs.
What is an SR-22 and who needs one?
An SR-22 is a certificate of financial responsibility that some states require for high-risk drivers, such as those with recent violations or lapses in insurance. It proves you carry the minimum required insurance coverage and is often necessary to legally drive after certain incidents.
How does my zip code affect my auto insurance premium?
Insurance companies use zip code data to evaluate risk factors like local accident rates, crime levels, and weather patterns. This “zip code date” helps determine how much you pay, so premiums can vary significantly depending on where you live.
What should I do if I get injured in a car accident?
If injured, seek medical attention immediately. Notify your insurance company to report the claim, and keep records of all medical treatments and expenses. Having adequate medical coverage in your auto policy can help cover these costs and provide peace of mind.
