Car shoppers are paying more than ever for new models, and the cost of insuring them has also been going up in recent years.
The average annual cost of full-coverage car insurance in the United States was $2,237 in the first half of 2026, according to a study released by Insurify. Insurance rates rose in 27 states, and drivers in seven states plus Washington, D.C., paid more than $3,000 annually for full coverage.
The finding comes as the average price of a new car rose to $49,855 in July, according to Cox Automotive’s Kelley Blue Book. The average July price was up 0.2% from June’s $49,757 average and 1.9% from July 2025, the group reported.
Insurify said drivers can’t expect much relief on insurance right now. “In 2025, car insurance prices did something they don’t normally do: fall,” the group said. “But 2026 trends suggest that this decline is ending.”
Where Car Insurance Costs the Most
USA TODAY’s Cars team identified the 10 states — plus Washington, D.C. — with the highest full-coverage costs.
1. Washington, D.C.
- Average annual cost (June 2026): $3,880
- Cost change, first half of 2026: -7%
- Projected cost at the end of 2026: $3,955
2. Maryland
- Average annual cost (June 2026): $3,646
- Cost change, first half of 2026: +1% (+$46)
- Projected cost at the end of 2026: $3,664
3. Rhode Island
- Average annual cost (June 2026): $3,611
- Cost change, first half of 2026: +2%
- Projected cost at the end of 2026: $3,600
4. Michigan
- Average annual cost (June 2026): $3,229
- Cost change, first half of 2026: +2%
- Projected cost at the end of 2026: $3,217
5. Georgia
- Average annual cost (June 2026): $3,109
- Cost change, first half of 2026: -1%
- Projected cost at the end of 2026: $3,101
6. Delaware
- Average annual cost (June 2026): $3,100
- Projected change, second half of 2026: +2%
- Projected cost at the end of 2026: $3,163
7. South Carolina
- Average annual cost (June 2026): $3,075
- Cost change, first half of 2026: 0%
- Projected cost at the end of 2026: $3,075
8. Nevada
- Average annual cost (June 2026): $3,039
- Cost change, first half of 2026: +4%
- Projected cost at the end of 2026: $3,090
9. New Jersey
- Average annual cost (June 2026): $2,923
- Cost change, first half of 2026: -5%
- Projected cost at the end of 2026: $2,966
10. New York
- Average annual cost (June 2026): $2,840
- Cost change, first half of 2026: -5%
- Projected cost at the end of 2026: $2,880