Since 2021, the national average cost of full-coverage car insurance has increased by 40%. The annual cost peaked at $2,294 in March 2025 and steadily declined through the remainder of the year. The current national annual average is $2,079.
Insurify data scientists project rates will increase slightly in 2026, rising just 0.6% by the end of the year, according to the Insuring the American Driver report. But, if continued tariffs push auto parts costs higher, claims costs could rise. Insurers could pass those costs on to consumers through higher insurance premiums.
Here’s a look at how full-coverage auto insurance costs have changed nationally since 2021, according to Insurify data.
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Factors that affect car insurance rates the most
Insurers consider many factors when setting premiums. Your driving record is a major factor — the better your record, the lower your premium. Your location, credit history, age, gender, and the car you drive also affect the cost of your car insurance.