Car insurance rates are rising again. Here's how drivers can save.
After a brief period of relief in 2025, car insurance costs are climbing again across much of the country.
The average annual cost of full-coverage car insurance reached $2,237 nationwide in the first half of 2026, according to a new Insurify report. The company projects the national average will rise to $2,242 by the end of the year, with rates expected to increase in 32 states.
While some states have seen modest declines, many drivers across Pennsylvania, Delaware and other parts of the region are still paying significantly more than they were just a few years ago.
Rates mixed in Pennsylvania, New Jersey and Delaware
Insurify found Pennsylvania drivers are paying an average of $1,930 a year for full coverage, up 2.3% so far this year. Rates are projected to rise another 1.2% before the end of 2026.
In Delaware, the average annual premium is $3,100, among the highest in the nation. Insurify projects Delaware rates will climb to $3,163 by year's end.
New Jersey offers a rare bit of good news. The average premium fell 5.3% during the first half of 2026 to $2,923. Even so, New Jersey remains one of the country's most expensive states for car insurance.
Why costs are increasing
According to Insurify, rising costs for vehicle repairs, maintenance and claims are putting renewed pressure on insurers.
Auto maintenance and repair costs have increased 45% over the past five years, roughly double the overall inflation rate.
The report also found that 27 states experienced insurance increases during the first half of 2026, a sharp change from last year, when many insurers were lowering rates to attract new customers.
Ways to lower your premium
Consumer reporter Josh Sidorowicz says drivers should not assume staying with the same insurer will automatically lead to savings.
Shopping around remains one of the most effective ways to lower costs. It's recommended to compare at least three to five quotes while making sure coverage limits and deductibles are the same.
You might also save money by:
- Bundling auto insurance with homeowners or renters insurance
- Paying the full premium upfront instead of monthly installments
- Dropping certain optional coverages on older vehicles
- Raising deductibles, if they can comfortably afford the higher out-of-pocket cost after a crash
- Enrolling in automatic payments
- Asking about low-mileage discounts if they drive less than average
Bumping up your deductible from $200 to $500 could lower your insurance costs by 15 to 30 percent, according to the Insurance Information Institute.
Consumer Reports found dropping some comprehensive and collision coverage on an older vehicle could save certain drivers $1,000 or more per year.
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