Why does car insurance keep going up even if I have not had an accident?

Your car insurance rate is not based only on your personal driving history. Insurers factor in the overall cost of claims in your area, including what other drivers are filing. If repair costs, medical expenses or legal settlements are going up where you live, your premium may increase even with a clean record. Comparing quotes from multiple insurers is the most effective way to offset these increases.

How can I lower my car insurance without reducing coverage?

There are several ways to reduce your premium without giving up coverage. You can raise your deductible, which typically lowers your monthly payment by 15% to 30%. You can also ask about discounts for bundling home and car insurance, having safety features on your vehicle, maintaining a clean driving record or paying your premium in full. Shopping around and comparing quotes from multiple insurers is one of the most effective strategies, as rates for the same coverage can vary by hundreds of dollars between companies.

Does my credit score affect my car insurance rate?

In most states, yes. Insurers use something called a credit-based insurance score to help predict how likely a policyholder is to file a claim. A lower credit score generally means a higher premium. However, California, Hawaii, Massachusetts, Michigan, Oregon, Utah and Washington are among the states that prohibit or limit the use of credit in auto insurance pricing. If your credit is not great, comparing quotes from multiple insurers is especially helpful since each company weighs credit differently.

Is car insurance more expensive for young drivers?

Yes. Drivers under 25 typically pay much more for car insurance than older, more experienced drivers. This is because younger drivers are statistically more likely to be involved in accidents. According to NHTSA crash data , drivers between the ages of 15 to 20 are in more fatal crashes than other age groups. That’s why insurers generally charge more for teenagers or young adults below age 25. The gap narrows as young drivers build a clean record and gain experience. Adding a teen to a parent's policy is usually cheaper than getting a separate policy.

Why is car insurance more expensive in some states than others?

Car insurance is regulated at the state level, and each state has its own rules, minimum coverage requirements and risk factors. States with higher population density, more uninsured drivers, frequent severe weather, higher medical costs and more litigated claims tend to have higher premiums. For example, Louisiana, Florida and Mississippi are among the least affordable states for car insurance, according to the Insurance Research Council . In contrast, rural states with fewer drivers and lower claim costs, like Vermont and Idaho, tend to have the lowest rates.

Will car insurance rates go down in 2026?

The outlook for 2026 is more stable than recent years. According to Bureau of Labor Statistics data, the pace of motor vehicle insurance increases slowed to 2.8% in 2025, the smallest increase in five years. Industry projections suggest a roughly 1% average increase in 2026, with more than half of states potentially seeing flat or declining rates. However, your individual experience depends on your state, driving record and insurer. Comparing quotes when your policy renews is the best way to make sure you are getting a competitive rate.

Does the type of car I drive affect how much I pay?

Absolutely. Insurers look at your car's value, repair costs, safety rating, theft rate and the likelihood of injury in a crash. Luxury vehicles, sports cars and electric vehicles tend to cost more to insure because they are more expensive to repair or replace. SUVs and sedans from mainstream brands are often among the cheapest vehicles to insure. Checking insurance costs before you buy a car can help you avoid a premium surprise.

How do uninsured drivers affect my rate?

When drivers without insurance cause accidents, they cannot pay for the damage they cause. That cost gets passed on to insured drivers through higher premiums and uninsured motorist claims. According to the Insurance Research Council, about 15.4% of drivers were uninsured in 2023, and one in three drivers were either uninsured or underinsured. This growing trend is a significant contributor to higher car insurance costs for everyone. Carrying uninsured motorist coverage protects you from paying out of pocket if an uninsured driver hits you.

Why Is Car Insurance So Expensive?

Key Takeaway

Car insurance costs are driven by rising repair bills, medical expenses, lawsuit payouts and a growing number of uninsured drivers.

Your personal rate depends on your driving record, location, age, credit history and the car you drive.

Where you live is one of the biggest factors, with the most expensive states costing more than double the cheapest ones.

Comparing quotes is the most effective way to pay less and Jerry lets you compare quotes from 100+ companies in minutes, free of charge.

Car insurance is expensive because the cost of everything behind it keeps going up. Car repairs, medical treatments, legal settlements and the number of uninsured drivers on the road have all been climbing steadily, which drives up what insurers pay out in claims and, in turn, what drivers pay in premiums.

According to the Bureau of Labor Statistics, the cost of motor vehicle insurance rose 2.8% in 2025, following a 17.8% spike in 2024. While the pace of increases has slowed, the cumulative effect means drivers are paying significantly more than they were a few years ago.

Jerry has helped 1,202,009 drivers compare car insurance quotes and find coverage that fits their budget. Here is a closer look at what is making car insurance so expensive, what affects your personal rate and how to pay less without sacrificing coverage.

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What is driving car insurance costs up

Here are the biggest factors behind rising car insurance costs and how each one affects what you pay.

Factor	How it affects your rate	What you can do
Your driving record	Accidents, speeding tickets and DUIs can raise your rate significantly.	Drive safely and ask about accident forgiveness programs.
Where you live	Urban areas with more traffic, theft and accidents typically have higher rates than rural areas. Insurers price down to the ZIP code level.	Compare quotes for your specific location.
Your age	Teen drivers and those under 25 pay the most. Rates tend to decrease as drivers gain experience, then may rise again for seniors.	Young drivers can get on a parent’s policy or take a defensive driving course.
Your credit history	In most states, insurers use a credit-based insurance score to help set your rate. A lower score usually means a higher premium.	Pay bills on time and check your credit report for errors.
The car you drive	The value, repair cost, safety rating and theft rate of your car all factor in. Luxury and high-performance cars cost more to insure.	Check insurance costs before buying a car.
Your coverage choices	Higher coverage limits and lower deductibles mean higher premiums. Minimum coverage is cheaper but may leave you exposed.	Balance coverage with affordability. Consider raising your deductible.
How much you drive	More miles on the road means more exposure to accidents. Long commuters typically pay more.	Ask about low-mileage discounts or pay-per-mile insurance.

Your driving record

How it affects your rate

Accidents, speeding tickets and DUIs can raise your rate significantly.

What you can do

Drive safely and ask about accident forgiveness programs.

Where you live

How it affects your rate

Urban areas with more traffic, theft and accidents typically have higher rates than rural areas. Insurers price down to the ZIP code level.

What you can do

Compare quotes for your specific location.

Your age

How it affects your rate

Teen drivers and those under 25 pay the most. Rates tend to decrease as drivers gain experience, then may rise again for seniors.

What you can do

Young drivers can get on a parent’s policy or take a defensive driving course.

Your credit history

How it affects your rate

In most states, insurers use a credit-based insurance score to help set your rate. A lower score usually means a higher premium.

What you can do

Pay bills on time and check your credit report for errors.

The car you drive

How it affects your rate

The value, repair cost, safety rating and theft rate of your car all factor in. Luxury and high-performance cars cost more to insure.

What you can do

Check insurance costs before buying a car.

Your coverage choices

How it affects your rate

Higher coverage limits and lower deductibles mean higher premiums. Minimum coverage is cheaper but may leave you exposed.

What you can do

Balance coverage with affordability. Consider raising your deductible.

How much you drive

How it affects your rate

More miles on the road means more exposure to accidents. Long commuters typically pay more.

What you can do

Ask about low-mileage discounts or pay-per-mile insurance.

Key takeaway: Rising repair costs, medical expenses, lawsuit payouts and uninsured drivers are the main forces pushing car insurance premiums higher.

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Why car insurance rates skyrocketed from 2022 to 2024

The past few years saw some of the steepest car insurance increases in modern history. Several forces collided at once to drive this surge:

Post-pandemic driving habits changed. When lockdowns ended, driving volume rebounded quickly, but risky behaviors like speeding and distracted driving persisted. Crash severity went up even as overall traffic volume returned to normal.
Supply chain disruptions raised parts prices. A global chip shortage and supply chain bottlenecks made new and used cars more expensive, which increased the cost of replacing totaled vehicles and repairing damaged ones.
Inflation hit repair shops. Labor shortages in auto body shops drove up labor rates. Replacement parts for newer cars with advanced technology, like sensors and cameras, became more costly.
Natural disasters grew more severe. Hurricanes, hailstorms and wildfires caused billions in insured losses, pushing comprehensive claims higher in affected states.

The good news: the rate of increases has slowed significantly. As insurers regain profitability, many are beginning to stabilize or even lower prices in some states. More than half of states saw car insurance rates drop in 2025.

Key takeaway: Car insurance spiked nearly 30% from 2022 to 2024 due to post-pandemic driving, supply chain issues and inflation. While prices remain higher than pre-pandemic levels, car insurance rates started to drop in 2025.

Factors that affect your car insurance rate

The industry-wide cost trends above affect everyone, but your personal rate depends on a mix of individual factors. According to the National Association of Insurance Commissioners (NAIC), here are the main things insurers look at when pricing your policy.

Factor	How it affects your rate	What you can do
Your driving record	Accidents, speeding tickets and DUIs can raise your rate significantly.	Drive safely and ask about accident forgiveness programs.
Where you live	Urban areas with more traffic, theft and accidents typically have higher rates than rural areas. Insurers price down to the ZIP code level.	Compare quotes for your specific location.
Your age	Teen drivers and those under 25 pay the most. Rates tend to decrease as drivers gain experience, then may rise again for seniors.	Young drivers can get on a parent’s policy or take a defensive driving course.
Your credit history	In most states, insurers use a credit-based insurance score to help set your rate. A lower score usually means a higher premium.	Pay bills on time and check your credit report for errors.
The car you drive	The value, repair cost, safety rating and theft rate of your car all factor in. Luxury and high-performance cars cost more to insure.	Check insurance costs before buying a car.
Your coverage choices	Higher coverage limits and lower deductibles mean higher premiums. Minimum coverage is cheaper but may leave you exposed.	Balance coverage with affordability. Consider raising your deductible.
How much you drive	More miles on the road means more exposure to accidents. Long commuters typically pay more.	Ask about low-mileage discounts or pay-per-mile insurance.

Your driving record

How it affects your rate

Accidents, speeding tickets and DUIs can raise your rate significantly.

What you can do

Drive safely and ask about accident forgiveness programs.

Where you live

How it affects your rate

Urban areas with more traffic, theft and accidents typically have higher rates than rural areas. Insurers price down to the ZIP code level.

What you can do

Compare quotes for your specific location.

Your age

How it affects your rate

Teen drivers and those under 25 pay the most. Rates tend to decrease as drivers gain experience, then may rise again for seniors.

What you can do

Young drivers can get on a parent’s policy or take a defensive driving course.

Your credit history

How it affects your rate

In most states, insurers use a credit-based insurance score to help set your rate. A lower score usually means a higher premium.

What you can do

Pay bills on time and check your credit report for errors.

The car you drive

How it affects your rate

The value, repair cost, safety rating and theft rate of your car all factor in. Luxury and high-performance cars cost more to insure.

What you can do

Check insurance costs before buying a car.

Your coverage choices

How it affects your rate

Higher coverage limits and lower deductibles mean higher premiums. Minimum coverage is cheaper but may leave you exposed.

What you can do

Balance coverage with affordability. Consider raising your deductible.

How much you drive

How it affects your rate

More miles on the road means more exposure to accidents. Long commuters typically pay more.

What you can do

Ask about low-mileage discounts or pay-per-mile insurance.

Learn More: How is car insurance calculated?

The most expensive states for car insurance

Car insurance is a state-regulated product, and what you pay varies dramatically depending on where you live. According to the Insurance Information Institute, states with dense populations, high medical costs, more uninsured drivers and frequent severe weather tend to have the highest rates.Here is what Jerry customers pay for full coverage in the most and least expensive states.

Here is what Jerry customers pay for full coverage in the most and least expensive states.

Most expensive states for car insurance

State	Average monthly cost	Why it costs more

State	Average monthly cost	Why it costs more

	$478/mo	High population density, above-average uninsured driver rate and frequent theft claims in Las Vegas.
	$386/mo	Highest litigation costs in the country, frequent severe weather and a high uninsured driver rate.
	$359/mo	No-fault state with required PIP coverage, heavy traffic, frequent hurricanes and a large uninsured driver population.
	$378/mo	High medical costs, dense commuter corridors and above-average repair labor rates.
	$296/mo	Small state with heavy commuter traffic, high claim frequency and rising medical costs.

Last Updated April 16, 2026

Least expensive states for car insurance

State	Average monthly cost	Why it costs less

State	Average monthly cost	Why it costs less

	$133/mo	Low population density, fewer accidents and lower medical and repair costs compared to other states.
	$144/mo	Rural driving conditions, low crime rates and fewer severe weather claims.
	$148/mo	No car insurance mandate keeps competition high, plus low traffic density and claim frequency.
	$151/mo	Low uninsured driver rate, rural roads and minimal severe weather exposure.
	$136/mo	Lowest population density in the country means fewer accidents and lower claim costs.

Last Updated April 16, 2026

State minimum requirements also play a role. States that require more coverage types or higher minimum limits tend to have higher average premiums. For example, no-fault states that require personal injury protection often have pricier policies because PIP pays out regardless of who caused the accident.

Why it matters: Where you live is one of the few rate factors you cannot change. But you can compare quotes across multiple insurers to find the best rate available in your area.

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How to lower your car insurance with Jerry

You may not be able to control repair costs or inflation, but there are real ways to pay less for car insurance. Here is how to get started with Jerry.

Compare quotes

Answer a few quick questions about yourself and your car. Jerry pulls side-by-side quotes from 100+ insurers in minutes.

Customize coverage

Adjust your coverage limits and deductibles to see how they affect your price. You control the balance between protection and affordability.

Switch and save

Pick the policy that fits, and Jerry handles the switch with no lapse between policies. Jerry can even help cancel your old policy for you

Jerry also keeps track of market rates and alerts you when it is time to reshop. Plus, Jerry’s licensed agents are available seven days a week if you need help choosing between types of car insurance or figuring out your coverage needs.

Jerry recommends: Compare quotes from multiple insurers every time your policy renews. Rates change constantly, and Jerry makes it easy to find the right coverage at a competitive price.

Jerry pulls up to 20 quotes from top rated carriers.

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Proven ways to lower your car insurance costs

Beyond switching insurers, there are several strategies that can help bring your premium down. Here are some of the most effective.

Raise your deductible

According to Jerry’s customer data, picking the right deductible can save you between 16% to 71% on your premium, and most Jerry customers pick a deductible between $501 to $1,000. If you can comfortably cover a $1,000 out-of-pocket expense, choosing a higher car insurance deductible is one of the fastest ways to reduce your bill.

Stack available discounts

Most insurers offer discounts that many drivers never claim. Bundling home and car insurance, paying in full, driving a car with safety features and maintaining a clean driving record can all lower your premium. Check out Jerry’s full list of car insurance discounts to see what you may qualify for.

Compare quotes regularly

Insurance rates change constantly. What was the cheapest option last year might not be the cheapest today. Comparing quotes every six to 12 months, or whenever your policy is up for renewal, is one of the most effective ways to avoid overpaying.

Drop coverage you don’t need

If your car is older and worth less than $5,000, you may save money by dropping comprehensive and collision coverage ifhe premiums you pay exceed what you would receive in a claim. Learn more about cheap car insurance options that still keep you protected.

Ask about usage-based or pay-per-mile programs

If you do not drive much, pay-per-mile insurance can lower your costs. These programs base part of your premium on how much and how safely you actually drive.

Learn more: How to save on car insurance

Key takeaway: Raising your deductible, stacking discounts, comparing quotes regularly and dropping unnecessary coverage are the most effective ways to lower your rate.

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FAQ

Why does car insurance keep going up even if I have not had an accident?

Your car insurance rate is not based only on your personal driving history. Insurers factor in the overall cost of claims in your area, including what other drivers are filing. If repair costs, medical expenses or legal settlements are going up where you live, your premium may increase even with a clean record. Comparing quotes from multiple insurers is the most effective way to offset these increases.
How can I lower my car insurance without reducing coverage?

There are several ways to reduce your premium without giving up coverage. You can raise your deductible, which typically lowers your monthly payment by 15% to 30%. You can also ask about discounts for bundling home and car insurance, having safety features on your vehicle, maintaining a clean driving record or paying your premium in full. Shopping around and comparing quotes from multiple insurers is one of the most effective strategies, as rates for the same coverage can vary by hundreds of dollars between companies.
Does my credit score affect my car insurance rate?

In most states, yes. Insurers use something called a credit-based insurance score to help predict how likely a policyholder is to file a claim. A lower credit score generally means a higher premium. However, California, Hawaii, Massachusetts, Michigan, Oregon, Utah and Washington are among the states that prohibit or limit the use of credit in auto insurance pricing. If your credit is not great, comparing quotes from multiple insurers is especially helpful since each company weighs credit differently.
Is car insurance more expensive for young drivers?

Yes. Drivers under 25 typically pay much more for car insurance than older, more experienced drivers. This is because younger drivers are statistically more likely to be involved in accidents. According to NHTSA crash data, drivers between the ages of 15 to 20 are in more fatal crashes than other age groups. That’s why insurers generally charge more for teenagers or young adults below age 25. The gap narrows as young drivers build a clean record and gain experience. Adding a teen to a parent’s policy is usually cheaper than getting a separate policy.
Why is car insurance more expensive in some states than others?

Car insurance is regulated at the state level, and each state has its own rules, minimum coverage requirements and risk factors. States with higher population density, more uninsured drivers, frequent severe weather, higher medical costs and more litigated claims tend to have higher premiums. For example, Louisiana, Florida and Mississippi are among the least affordable states for car insurance, according to the Insurance Research Council. In contrast, rural states with fewer drivers and lower claim costs, like Vermont and Idaho, tend to have the lowest rates.
Will car insurance rates go down in 2026?

The outlook for 2026 is more stable than recent years. According to Bureau of Labor Statistics data, the pace of motor vehicle insurance increases slowed to 2.8% in 2025, the smallest increase in five years. Industry projections suggest a roughly 1% average increase in 2026, with more than half of states potentially seeing flat or declining rates. However, your individual experience depends on your state, driving record and insurer. Comparing quotes when your policy renews is the best way to make sure you are getting a competitive rate.
Does the type of car I drive affect how much I pay?

Absolutely. Insurers look at your car’s value, repair costs, safety rating, theft rate and the likelihood of injury in a crash. Luxury vehicles, sports cars and electric vehicles tend to cost more to insure because they are more expensive to repair or replace. SUVs and sedans from mainstream brands are often among the cheapest vehicles to insure. Checking insurance costs before you buy a car can help you avoid a premium surprise.
How do uninsured drivers affect my rate?

When drivers without insurance cause accidents, they cannot pay for the damage they cause. That cost gets passed on to insured drivers through higher premiums and uninsured motorist claims. According to the Insurance Research Council, about 15.4% of drivers were uninsured in 2023, and one in three drivers were either uninsured or underinsured. This growing trend is a significant contributor to higher car insurance costs for everyone. Carrying uninsured motorist coverage protects you from paying out of pocket if an uninsured driver hits you.

Still have questions? Contact us

Methodology

Data included in this analysis comes from policies that Jerry has quoted within the last 6 months for drivers with a clean record and that have full coverage, unless stated otherwise. Data related to violations, accidents or credit scores pull from quote data from the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from. Read Jerry’s car insurance data methodology to learn more about how we collect, verify and share real-world insurance data.

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Our experts

Ben Moore

Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.

Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.