New Study Reveals U.S. Car Insurance Costs Have Surged 55.6% Since 2021, Costing Drivers an Extra $900 a Year

KEY HIGHLIGHTS

• Washington is the only state where average car insurance premiums more than doubled, rising by 103.1% between 2021 and 2026.

• 31 out of 50 states saw premiums climb by over 50% in five years, with 6 states recording increases above 90%.

• The national average premium has risen by 55.6% since 2021, meaning the average driver now pays $900 more per year, or an extra $75 every month.

Car insurance costs have climbed sharply across the United States over the past five years, leaving millions of drivers paying significantly more to stay on the road. No single region or income bracket has escaped these increases: the pattern is consistent and widespread, affecting everyone from small rural states to major population centers. For drivers already managing tight household budgets, the sustained upward pressure on premiums represents a considerable and growing financial burden.

The analysis was conducted by Grigor Law Injury & Car Accident Lawyers, comparing average annual car insurance premiums across all 50 states using 2021 figures from Bankrate's True Cost of Auto Insurance 2021 report and 2026 figures from CarInsurance.com, with state minimum coverage requirements sourced from MoneyGeek. Percentage increase ranked states from 2021 to 2026, with a secondary ranking by absolute dollar increase.

The Ten States Below Recorded The Largest Percentage Increases In Average Annual Car Insurance Premiums Between 2021 And 2026

All of the ten states in this table started 2021 with premiums below the national average of $1,620, suggesting that lower-cost states have seen the most dramatic catch-up in rates. All ten recorded increases were at least 80%, a threshold not reached by any state in the bottom half of the national ranking.

Looking at the study, Chrissy Grigoropoulos, Founding Partner of Grigor Law Injury & Car Accident Lawyers, commented:

"Rising premiums create a dangerous gap for accident victims. When at-fault drivers are underinsured because they have cut coverage to reduce costs, injured parties often find themselves without adequate compensation. These figures are a warning that the affordability crisis in car insurance has direct consequences in personal injury cases across every state."

States By The Absolute Dollar Increase In Average Annual Premiums From 2021 To 2026

The dollar-increase ranking diverges considerably from the percentage ranking. Nevada, Michigan, Florida, California, and Louisiana all appear in this top ten despite not featuring in the top ten for percentage growth, because their premiums were already high in 2021. Even a moderate percentage rise on a large base translates into a substantial annual cost increase for drivers in those states.

Nine States Now Exceed $3,000 Per Year, With the Five Costliest All Surpassing $3,400

All five states in this table now have average annual premiums above $3,400, with Louisiana crossing $3,999. Notably, none of these five states appear in the top ten for percentage increase, confirming that the most expensive states were already costly before 2021 and have continued to rise from an already elevated baseline.

Even the Slowest-Rising State Saw Premiums Climb, as No State Recorded a Decrease

Not one of the 50 states in the dataset recorded a decrease in average premiums over this period. Maryland's 6.5% rise, the smallest in the country, still represents an additional $122 per driver per year. Even drivers in the states with the most modest increases are paying more today than they were five years ago.

Methodology

This analysis measured average annual car insurance premiums across all 50 U.S. states, comparing 2021 figures with 2026 figures to identify where costs have risen the most. Bankrate's True Cost of Auto Insurance 2021 report provided the premium data for 2021, sourced from CarInsurance.com's average car insurance rates for 2026. MoneyGeek referenced state minimum bodily injury liability requirements. Percentage increase ranked states in two ways: first from 2021 to 2026, and second by the absolute dollar increase over the same period. The calculation of national averages came from the same 50-state dataset.

Data Sources

• MoneyGeek: https://www.moneygeek.com/insurance/auto/state-minimum-car-insurance-requirements/

• Bankrate: https://www.bankrate.com/2021/03/30172924/Bankrate-True-Cost-of-Auto-Insurance-2021.pdf

• CarInsurance.com: https://www.carinsurance.com/state-car-insurance-rates

• Research Dataset: https://docs.google.com/spreadsheets/d/1WAED9DvaB1wNSV6YMb9nEek2Hrm8H3WHhQI5RCfuGPU/edit?gid=0#gid=0

• Research by: https://grigorlaw.com/

About Grigor Law Injury & Car Accident Lawyers

Grigor Law Injury & Car Accident Lawyers is a premier New York "all injury" law firm representing clients in personal injury, car accidents, workers' compensation, and no-fault claims.