Annual report on the state of auto insurance highlights state-by-state rate trends, a new affordability index, strategies for consumers to save and more

TheZebra.com, the easiest way to compare and buy insurance, today released its 2026 State of Insurance™ | Auto Report. The annual report, which utilizes The Zebra’s Dynamic Insurance Rating Tool (DIRT), projects that in the first two quarters of 2026, 19 states will see an increase in auto insurance premiums, while 13 may see a decrease.

These findings come after average auto insurance premiums rose three percent nationally from 2024 to 2025, compared to a drastic 18 percent jump the previous year, suggesting rates may be stabilizing. In 2026, The Zebra projects the typical American driver will pay $2,256 on average in annual auto insurance premiums.

“Americans are facing rising auto insurance costs due to various factors, including economic pressures, population growth in dense areas and severe weather,” said David Seider, chief commercial officer at The Zebra. “While competition and targeted rate reductions give consumers opportunities to save, most renewals will remain high. If the economy weakens, insurance could take a growing bite out of take-home pay, prompting more frequent shopping for better deals – or even causing some to forego coverage altogether."

To understand the true impact of these rates on Americans’ wallets, The Zebra also launched The Zebra Premium Pressure Index (ZPPI), a new proprietary metric comparing insurance premium data against broader economic indicators. ZPPI provides a more comprehensive view of not just the cost of insurance, but how affordable it is for consumers. For example, Americans are spending 2.6 percent of their annual income on auto insurance, according to ZPPI.

Additional key findings from the report include:

• Among non-luxury brands, the Nissan GT-R is the most expensive model to insure at nearly $400 per month. Meanwhile, the Ford Bronco is the least expensive model to insure at $76 per month.
• According to ZPPI, residents of Arkansas, Louisiana and Florida are spending nearly five percent of their annual income on auto insurance.
• Vermont, Minnesota, and Mississippi are expected to see 6-13 percent decreases, while Oregon, Maryland, and Utah are forecasted to see 8-21 percent increases in insurance prices.
• A total of six states saw a greater than 50 percent increase in insurance prices from 2024-2025 (Louisiana, Nevada, New York, Georgia, Maryland and Utah).
• On average, texting while driving leads to a 17 percent premium increase.

The Zebra’s 2026 State of Auto Insurance Report analyzes more than 32 million auto insurance rates across all 34,500 U.S. ZIP codes, examining trends over the past 11 years to identify the factors shaping insurance pricing and what they mean for the nation’s 240 million drivers in 2026.

“Auto insurance isn’t one‑size‑fits‑all, and rates can vary dramatically depending on who you choose to insure with,” said Seider. “That’s why it’s so important for consumers to shop around and compare quotes. Doing so can save money and help people find coverage that fits both their needs and their budget.”

To review the report in full, visit https://www.thezebra.com/state-of-insurance/auto/2026/.

About TheZebra.com: TheZebra.com is the trusted partner for American insurance customers. People turn to The Zebra for easy-to-use services and tools and friendly, licensed advisors to get the insurance they need in a way that works for them. This ongoing relationship goes beyond a single transaction. For over 10 years, The Zebra has helped people across the country by providing guidance and solutions for their insurance needs. In today’s digital world, The Zebra’s customer-centered approach offers people the choices they want and simplicity they need.

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