States with the Biggest Changes in Auto Insurance Prices This Year

1. New Jersey

There are a number of factors behind New Jersey’s increasing insurance costs. Rates are naturally high in general because New Jersey is a densely populated state, which raises the rates of accidents, thefts, and medical claims.

However, as to why rates are rising, we can also point to state-mandated policy changes. This includes some recent increases in minimum legal coverage limits. In January 2026, New Jersey rolled out the final phase of their coverage limits to not $35K/$70/$25 (bodily injury liability per person and per accident and property damage). As people's insurance policies renew, they will automatically renew at the higher coverage if they carried the previous state minimums.^[1] 

Many rate hikes were approved for New Jersey insurance companies, including 50 that were approved in 2025 alone.^[2] Rate hikes are usually approved in light of broader macroeconomic trends like inflation, higher medical costs, and the rising cost of complex vehicle repairs (due to advanced sensors and tech in newer cars), which lead to insurance companies needing to pay out more money for claims. 

2. Oregon

Car insurance costs in Oregon are climbing in 2026 due to many of the economic reasons they're rising everywhere. However, Oregon has also seen high population growth, particularly among younger adults aged 25 to 39—a group statistically linked to a higher frequency of accidents—which naturally increases the number of claims.^[3]

On top of increased road congestion, Oregon has fairly high rates of uninsured or underinsured drivers. Roughly 14% of Oregon drivers are uninsured, and many more carry only the state-mandated minimum coverage, leading to higher out-of-pocket expenses during severe crashes and creating a cycle of rising liability costs that insurers have to then take on.^[4] 

There aren't any new laws in Oregon leading to increases in insurance, but the state did pass a law that requires insurance companies to explain the reasons behind rate hikes.^[5]

3. Vermont

In recent years, Vermont has seen an increase in severe winter weather events and flooding across the state, resulting in a spike in vehicle total-loss claims that insurers must cover through comprehensive policies.^[6]

Additionally, while Vermont requires relatively low baseline minimums (25/50/10), which helps to explain its overall lower rates, it does have high mandatory limits for uninsured/underinsured motorist coverage.  

On top of these state-specific factors, Vermont isn't immune to the larger economic issues affecting everyone, including inflation and supply chain issues that have led insurers to increase rates. 

1. North Carolina

This is one where the numbers don’t tell the whole story. We likely see an overall drop because prices were extra high due to some bad hurricane years, driving up claims costs. However, as a result, the state has approved rate hikes averaging 5% statewide, which will likely raise North Carolina drivers’ insurance costs.^[7] 

Additionally, in 2025, North Carolina passed a law increasing the state's minimum liability mandates. So, while not reflected in this data, drivers who had to increase coverage to meet the new minimums likely saw increases to their costs as well.^[8]

2. North Dakota

North Dakota drivers saw a decent decrease in insurance prices over the last year. Some of this change is due to general market stabilization; however, North Dakota also passed a law in August of 2025 that allows insurance companies to offer premium discounts to consumers who waive their right to choose their own body shop for repairs, among other conditions.^[9] Drivers taking insurance companies up on those discounts could account for the lower rates we’re seeing.

3. Florida

You don't often hear "insurance decrease" and "Florida" in the same sentence, but it's been a good year for Florida. There are a number of reasons behind Florida's improved market conditions, including some weather-related (a few years of quiet hurricane seasons) and some legislative.

The sharp decrease in Florida’s insurance rates is because of legislation related to lawsuit and tort reform, which was passed in 2023. Prior to that, insurance fraud and frivolous lawsuits were common in the state. By passing laws that lowered overall litigation costs, claims costs decreased, leading insurance companies to reduce rates by an average of 6% to 10%.^[10] As market conditions have stabilized, more insurers have returned to the market, increasing competition and better rates for consumers.