Every figure in this article is traced to the primary sources listed under Sources.

Your car insurance premium can rise even when your driving record is clean. Insurers set rates based on the cost of covering risk in your state or rating territory, not just your driving history. The federal price index fell 5.1% in the year to August 2026, but your renewal notice may still show an increase.

Key Findings

  • Territory-wide costs. Insurers price policies based on the cost of covering all drivers in your state or rating territory, not just your own record.
  • Federal index fell 5.1%. The Bureau of Labor Statistics motor vehicle insurance index dropped 5.1% in the 12 months ending in August 2026.
  • Average premium rose 1%. Insurify’s mid-year analysis found the average annual full-coverage premium rose 1% in the first half of 2026, to $2,237.
  • 32 states projected to rise. Insurify projects higher rates in 32 states by the end of 2026, with the largest increases in Connecticut and Kentucky.
  • Repair costs up 28%. Triple-I reports that auto replacement costs rose 28% from 2021 to 2025.

Navigate This Guide

Why Did My Car Insurance Go Up With a Clean Record?

Your insurer does not price your policy in a vacuum. It files a rating plan with your state insurance department that sets base rates by territory, then adjusts for your individual factors. When the cost of doing business in your territory rises, the base rate rises for every driver in that territory, including those with clean records. Three external costs have been rising. Auto replacement costs climbed 28% from 2021 to 2025, according to Triple-I. Maintenance and repair costs are up 45% over five years, according to Insurify. And legal system abuse added up to $281.2 billion in increased liability insurance losses from 2015 to 2024, according to Triple-I.

5.1%Federal motor vehicle insurance index drop, 12 months to August 2026
$2,237Average annual full-coverage premium, first half of 2026 (Insurify)
32States where Insurify projects higher rates by the end of 2026

Why the National Average and Your Renewal Notice Disagree

Two numbers can be true at the same time. The federal Bureau of Labor Statistics motor vehicle insurance index fell 5.1% in the 12 months ending in August 2026. That index tracks national price changes across all policies. Insurify’s mid-year analysis found the average annual full-coverage premium rose 1% in the first half of 2026, to $2,237. Insurify’s figures come from more than 250 million quotes using median premiums for drivers ages 20 to 70 with clean records and average or better credit. A driver with a recent claim or a thin credit file could see a different picture. Insurify data also show average premiums fell 6% in 2025, to $2,144, after a 46% jump from 2022 to 2024.

Where Rates Are Rising

  • Connecticut 10% increase in the first half of 2026, with a projected 15% year-over-year increase by December.
  • Kentucky 6% increase in the first half of 2026.
  • West Virginia 5% increase in the first half of 2026.
  • Illinois and Nevada 4% increase each in the first half of 2026.

Where Rates Are Falling

  • Washington, D.C. 7% decrease in the first half of 2026.
  • New Mexico 6% decrease in the first half of 2026.
  • New Jersey, New York, and Massachusetts 5% decrease each in the first half of 2026.
  • National index 5.1% decrease in the 12 months ending in August 2026.
State Regulation
Not-at-fault surcharges Allowed in most states
California and Oklahoma prohibit insurers from increasing premiums after a not-at-fault accident.
Other states allow insurers to use a broader set of rating factors, including not-at-fault claims. Check your state insurance department for the rule that applies to you.
Credit-Based Insurance Score
Credit history affects rates Check your state
Most states allow insurers to use credit-based insurance scores as a rating factor.
A thin credit file or a recent change in your score can raise your premium even if your driving record has not changed. A few states restrict or prohibit this practice.

Compare Car Insurance Quotes With the Same Coverage

If you are shopping for car insurance, compare quotes from several insurers using the same coverage limits and deductibles.

GET YOUR CAR INSURANCE QUOTES

What Drivers Should Do Now

You cannot control the territory-wide costs that drive base rates. You can control how you respond to them. Start by understanding what changed on your policy, then compare identical coverage before you renew.

Pull your declarations page
See the exact premium and coverage limits
Your declarations page shows the premium, coverage limits, deductibles, and effective dates. Note any change from your last term. If you have questions about how to review your coverage and policy details, start there.
Price identical coverage with at least two other insurers
Same limits, same deductibles, same drivers
A lower premium with lower coverage is not a savings. Compare quotes with identical limits and deductibles. Ask each insurer whether it uses credit-based insurance scores and how that affects your rate.
Ask your current insurer for a written explanation
Know which rating factor changed
Insurers can tell you which rating factor changed. If the explanation does not match your state’s rules, contact your state insurance department.
Check your state insurance department
File a complaint if a charge violates state law
Your state insurance department publishes guidance on rating factors, including not-at-fault accident surcharges. If you believe a charge violates state law, file a complaint.
Review your deductibles and coverage limits
Confirm they still match your needs
Raising a deductible lowers your premium, but increases your out-of-pocket cost after a claim. Make sure you can cover the deductible before you change it.

Frequently Asked Questions About Car Insurance Increases

Does my credit score affect my car insurance rate?

In most states, yes. Insurers can use credit-based insurance scores as a rating factor. Insurify’s data uses drivers with average or better credit. A thin credit file or a recent change in your credit-based insurance score can raise your premium even if your driving record has not changed. A few states restrict or prohibit this practice.

Can my insurer raise my rate after a not-at-fault accident?

It depends on your state. California and Oklahoma prohibit insurers from increasing premiums after a not-at-fault accident. Other states allow insurers to use a broader set of rating factors. Check your state insurance department for the rule that applies to you.

The Bottom Line

Your premium can rise even with a clean record because insurers set rates based on the cost of covering risk in your state or territory, and those costs have been rising. A national average does not tell you what your insurer did at your last renewal. Pull your declarations page, compare identical coverage, and ask your insurer for a written explanation of any change. If you believe the increase violates your state’s rules, your state insurance department is the place to ask.

How We Verified This

We reviewed the Bureau of Labor Statistics Consumer Price Index release for August 2026, published September 11, 2026. We reviewed Insurify’s mid-year 2026 car insurance report and its October 2026 cost page. We reviewed Triple-I’s June 12, 2026 blog post on drivers of rising auto premiums and its January 27, 2026 blog post on New York auto insurance affordability. We could not verify the specific rating factors used by any individual insurer in any state, because those filings are not uniformly public.

Disclaimer: This article is for informational purposes only and is not professional insurance, legal or financial advice. Rates, rules and deadlines vary by insurer, state and driver, and can change. Confirm details with a licensed agent, your insurer or your state department of insurance before making a coverage decision.

Sources

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