Why Did My Car Insurance Go Up?

Car insurance costs keep rising in 2026 because of more frequent and severe accidents, higher repair costs and slim insurer profit margins. Inflation and risky driving behaviors also increase legal costs and premiums.

Rate changes are common when it's time for policy renewal.

Your insurer reassesses your risk level by checking DMV records for insurance lapses, tickets or moving violations. Your insurer also reviews your credit score. If your score dropped, you'll pay higher premiums.

Some factors are out of your control, like state laws. But you can maintain a good driving record or improve your credit score to lower future premiums.

Your driving record affects what you pay for car insurance. Drivers with clean records pay around $1,506 per year for full coverage with a $1,000 deductible. Speed 11 to 15 mph over the limit and that jumps to $1,880 annually. Get into an at-fault accident and you're looking at $2,180 per year. A DUI hits hardest at $2,665 annually, $1,159 more than clean drivers pay.

Car insurance costs change by state based on population density, minimum insurance requirements, repair costs and weather-related risks like hurricanes or hail.

Rates differ even within states. New York's average car insurance cost changes by borough based on where you park overnight.

Insurance companies assess the risk of everyone on your policy, including household members who could drive your car.

Adding a teen or high-risk driver will bump up your rates. If there's someone you don't want driving your car, ask your insurer about listing them as an "excluded driver." Your policy won't cover them, but it won't affect your rates.

Adding a teen to your family policy costs more upfront, but it's still the cheapest way to insure them. Rates drop as your teen gains experience and keeps a clean record.

Shop around yearly for the best teen driver rates and save hundreds of dollars.

Your car's make and model affect your premiums. Adding or switching to a new car increases your insurance rate because models with rare parts cost more to insure.

Changes in your credit score affect car insurance rates. If your credit score drops, your insurer may increase your policy costs. Some states, including California, Hawaii and Massachusetts, prohibit using credit scores for rating.

Your location affects car insurance premiums.

Rates change by ZIP code even within the same state. Insurance companies look at your area's overall risk: if your area has high accidents and violations or more people in your ZIP code filed claims, you'll pay more. When accident and violation rates change in your area, your premiums change, too.

Qualifying for car insurance discounts can save you hundreds of dollars yearly. But you may no longer be eligible for discounts at policy renewal.

A college student who graduated and returned home may lose their distant student discount. A driver who had a recent accident may lose their safe driver discount.

Check with your insurer to see if you still qualify for discounts and ask about new car insurance discounts.

Age and gender affect how much you pay.

Young drivers, especially males under 25, pay more because insurers view them as higher accident risks. After 25, gender affects your rates less. Car insurance rates don't drop at a specific age. Instead, your driving history and experience matter more as you age.

Rates drop with age and reach their lowest around 50. Teenagers and seniors pay more because they're considered riskier drivers.

If your car insurance rates increase, you can talk to your insurer, adjust your coverage or even switch providers to lower your costs.

Car insurance rates increase due to personal factors like accidents, driving violations and credit changes, plus external factors such as rising repair costs and area-wide claim frequency. The biggest rate increases come from violations: speeding tickets increase rates by 24.7%, accidents cause a 46.2% increase, and DUIs result in a 76.6% spike.

Fight rising rates by keeping your driving record clean and shopping around yearly. Bundle your policies or raise your deductibles to save money. When something good happens, like paying off a ticket or finishing a defensive driving course, call your insurer and ask for a lower rate.

Multiple factors affect car insurance rates. MoneyGeek answered frequently asked questions about insurance rate changes.

Our Research Approach

Our analysis covers 22,848 quotes from six providers across 100 ZIP codes, using data from state insurance departments and Quadrant Information Services. This captures national trends and regional differences that affect your costs.

Insurance companies adjust premiums based on risk patterns at specific ages. We used a consistent driver profile across all age groups to isolate the impact of age alone, without factors like vehicle type or driving record affecting results.

Sample Driver Profile

We used this standard profile to calculate average annual costs:

• 16 to 25-year-old drivers (our primary focus group)
• 30- and 40-year-old drivers (both male and female for comparison)
• 2012 Toyota Camry LE
• Clean driving record
• 12,000 miles driven annually

We modified this profile by location, coverage type and limits to show average costs for different driver situations across the United States.

Coverage Levels We Analyzed

Your deductible is the amount you pay before insurance covers the rest of a claim. Full coverage combines liability insurance with comprehensive and collision coverage. This provides financial protection for you and your vehicle.

For national averages, we used 100/300/100 full coverage:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability per accident
• Comprehensive and collision coverage with $1,000 deductible

For state-specific data, we used 50/100/50 full coverage:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• Comprehensive and collision coverage with $1,000 deductible

Important: Liability coverage doesn't have deductibles. The $1,000 deductible applies only to comprehensive and collision coverage.

Why these coverage levels: The 100/300/100 matches what most financial experts recommend for adequate financial protection, while 50/100/50 is closer to what many states require. You can see both budget-conscious and comprehensive coverage costs.

Rates vary by location, driving record and other factors.