Rhode Island posted the sharpest year-over-year increase, with its average premium rising approximately 26.6%
Huntington Beach, Calif.—Freeway Insurance has released new findings identifying the states with the highest car insurance rates in 2026, based on an analysis of customer policy data rather than quoted or estimated rates.
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.
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.
South Carolina had the highest average car insurance rate in the analysis, at $297.28 per month, followed by New York at $276.12 and Rhode Island at $254.01. Rhode Island also posted the sharpest year-over-year increase in the group, with its average premium rising approximately 26.6% compared with the first half of 2025.
10 locations with the highest average car insurance rates in the first half of 2026
1. South Carolina: $297.28 (-2.5% year over year change)
2. New York: $276.12 (-7.0%)
3. Rhode Island: $254.01 (+26.6%)
4. Maryland: $250.47 (-1.9%)
5. District of Columbia: $249.74 (-16.6%)
6. Delaware: $247.62 (-5.3%)
7. Connecticut: $236.39 (+1.0%)
8. Massachusetts: $222.91 (+5.9%)
9. Missouri: $212.85 (-6.4%)
10. Nevada: $211.12 (+4.0%)
Across those 10 locations, the average monthly premium was approximately $245.85, more than double the $103.93 average among the 10 lowest-cost states.
10 lowest-cost states
1. Wyoming: $87.23 per Month (-8.5% year over year change)
2. Idaho: $97.80 per Month (-6.3%)
3. Indiana: $101.60 per Month (-4.6%)
4. Iowa: $103.01 per Month (+4.3%)
5. Alabama: $103.38 per Month (-7.9%)
6. South Dakota: $106.17 per Month (-3.2%)
7. Hawaii: $107.09 per Month (+26.8%)
8. Vermont: $109.73 per Month (+7.5%)
9. Oklahoma: $110.89 per Month (-3.1%)
10. Alaska: $112.44 per Month (-27.5%)
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