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Nationally, car insurance premiums have surged in recent years — 11.57% in 2023, 17.13% in 2024, and 7.56% in 2025 — but the trend is finally favorable for car owners. Analysts project the national average increase for 2026 will be just 0.67%, according to Pennypincher.com. Still, there are many regional disparities, with some states facing steep premium hikes due to factors ranging from severe weather to regulatory changes.
If you're looking to save money on car insurance, here are the 10 states you should avoid.
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Massachusetts
An analysis by MoneyGeek shows Massachusetts as one of the leading states with percentage increases in 2026, with a 10.6% climb.
As expected, Boston-area congestion and expensive claims involving newer vehicles are the main reasons for this hike. Rising medical costs, more frequent accidents in other densely populated metro areas, and growing repair expenses also contribute.
New Jersey
According to data from ValuePenguin, New Jersey is on track to see one of the largest increases in the country this year. Premiums are projected to rise roughly 10.46%.
There are several factors behind the "why" here. The state has updated its minimum coverage requirements, which forced insurers to raise prices to offset higher potential payouts. It also has a growing uninsured-driver problem and dense traffic corridors.
High medical claim costs and congestion-related accidents in the New York metro area contribute to New Jersey's unenviable position as one of the most expensive insurance markets in the country.
Maryland
Maryland's projected 9.6% increase is shaping up to be one of the biggest jumps in the country.
Maryland's car insurance woes are similar in many ways to those of Washington, D.C. Heavy commuter traffic around Baltimore and the D.C. suburbs causes a high volume of claims, while repair labor and health care expenses are rising sharply. Maryland is also one of the most expensive states overall for full-coverage insurance.
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Nevada
Nevada's projected premium increase is 6.42%. For Las Vegas, this means it remains an expensive accident environment because of heavy tourism traffic, elevated theft rates, and high repair costs.
Newer vehicles equipped with advanced sensors and driver-assistance technology are significantly more expensive to fix after collisions. Medical care costs are also significant reasons for this situation.
California
While California insurers have been seeking delayed rate increases for years, drivers' premiums are still expected to rise by 6.13% in 2026.
Everything from wildfire exposure to high repair costs, a surge in theft claims, and expensive labor factors into this increase. Moreover, the state's high concentration of electric vehicles is a growing issue. These vehicles often cost more to repair and insure than traditional gas cars.
New York
Expecting a 6.02% increase in 2026, New York continues to rank among the most expensive states for car insurance. Higher claim costs are caused by high population density, heavy traffic, and a mandatory no-fault insurance system.
Repair and health care expenses in the region are also among the highest in the country.
Washington, D.C.
While D.C.'s increase (5.36%) is more modest than the previous entries, it's still a burden on your wallet if you live in the nation's capital.
Like in other major urban areas, high traffic density, frequent collisions, and expensive repair labor and bodily injury claims contribute to rising prices in the district. In addition, theft rates and high numbers of uninsured drivers compound the problem.
Texas
Texas doesn't expect a double-digit increase in car insurance premiums in 2026. Its projected hike is less than 5%. Still, severe weather, rapid population growth, and increasingly expensive urban accident claims in cities like Houston and Dallas put pressure on Texas drivers.
Larger vehicles are also subject to higher repair costs. Combined with supply chain issues, it puts insurers in a bad spot when it comes to slashing costs.
Washington
With a 4% projected hike in car insurance, Washington is well-deserving of a spot on this list. Growing theft rates and rising repair costs, particularly around Seattle, are the driving force behind this increase. Increased weather-related claims are also contributing to insurer losses and higher premiums.
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Louisiana
While Louisiana expects a moderate premium increase of 1.5% in 2026, it's the most expensive state for car insurance, with drivers paying over $4,000 annually, according to Insure.com.
Severe weather exposure, litigation costs, and a high number of uninsured drivers also make the state vulnerable to future increases.
Why costs could still rise more than expected
As we noted, current forecasts suggest the national average increase for 2026 may stay under 1%. Still, some analysts warn that pending tariffs on imported auto parts could impact that number. Should replacement parts become more expensive later in the year, the national increase could jump as high as 4%.
Since vehicles increasingly rely on expensive electronics, cameras, and sensors that already make repairs far more costly than they were just a few years ago, this is a significant threat.
Bottom line
Even in these 10 states, where premiums are getting out of hand, drivers still have a powerful way to lower costs: they can compare auto insurance rates. Insurance companies use different formulas to calculate risk, meaning the same driver can receive wildly different quotes depending on the carrier.
If you want to save hundreds of dollars each year, experts say shopping around regularly, especially before renewal periods, is the way to go.
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