Car insurance rates in the United States saw a slight decrease at the start of 2026, according to data from Insurify. The national average monthly rate for full-coverage car insurance dropped from $179 to $178 in January, while liability coverage remained steady at $100 per month.
Insurance costs continue to vary significantly by state. Factors such as weather risks, repair expenses, traffic levels, and vehicle crime contribute to these differences. For example, Washington, D.C., remains the most expensive location for car insurance with an overall average monthly cost of $259. Maryland follows at $248, with Rhode Island ($230), New Jersey ($218), and New York ($213) also among the highest.
On the other end of the spectrum, New Hampshire continues to offer the lowest average rates nationwide. The state’s overall average is $66 per month—well below national averages—with liability-only coverage at $53 and full coverage at $79. Wyoming ($68), Iowa ($80), Idaho ($85), and North Dakota ($86) round out the five states with the lowest rates.
Insurify’s data shows that all rates are based on rolling medians or averages through January 2026. Full-coverage prices typically use two-year rolling medians except in certain states where one-year figures are used.
Several factors influence how much drivers pay for car insurance. These include driving history (such as accidents or violations), age, gender, location, credit score, type of vehicle and its safety features, annual mileage driven, chosen coverage types and limits, and deductible amounts.
Most states require drivers to carry minimum liability coverage; only New Hampshire does not have this mandate. Insurance professionals generally recommend purchasing more than just minimum coverage for better financial protection in case of an accident. Drivers who lease or finance vehicles are usually required by lenders to obtain full-coverage policies.
To help reduce premiums, drivers can maintain safe driving habits and avoid risky behaviors like speeding or distracted driving. Many insurers provide discounts—for example, for good students or insuring multiple cars—that can lower costs further. Raising deductibles on collision and comprehensive policies may also result in lower monthly payments but increases out-of-pocket expenses if a claim is filed.
Adjusting coverages carefully is another way to manage costs; however, experts caution against underinsuring just to save money. Shopping around for quotes from different companies each renewal period can help consumers find better deals.
Insurify operates as a licensed digital insurance agency across all 50 states and Washington D.C., connecting users with quotes from over 100 insurers using AI-driven comparisons tailored to individual needs (https://insurify.com/). The company collaborates with leading providers to offer exclusive discounts and emphasizes customer privacy by not selling personal information (https://insurify.com/). Snejina Zacharia leads Insurify as its principal executive (https://insurify.com/).
Insurify’s platform allows consumers to compare personalized insurance options without fees while providing assistance from licensed agents throughout the policy selection process (https://insurify.com/).
