Rate increases

Why your car insurance premium went up

A higher renewal has two kinds of causes: changes that hit everyone in your state, and changes about you. How to tell them apart line by line, and what to ask before you pay.

By Guardbrook Editorial Team Updated October 26, 2026 7 min read

At a glance

U.S. average, 2022 to 2023: $1,124 to $1,282
Price index, Sept. 2026: −5.0% vs. a year earlier
Two kinds of cause: Market and personal
First step: Compare line by line

Illustration: rising bars under an upward arrow, printed on a receipt

Bottom line

Car insurance prices rose fast after 2022: the NAIC's U.S. average expenditure went from $1,124 per insured car in 2022 to $1,282 in 2023, and prices kept climbing into 2024. In 2026 the federal price index has turned down, 5.0% lower in September 2026 than a year earlier, so a renewal that still goes up deserves a closer look. Compare each coverage with last term, then check the personal causes: a ticket, a claim, a new driver, an expired discount, a move, a new car, higher state minimums or, where allowed, your credit. Ask the insurer to name the reason, then compare quotes.

What happened to prices everywhere

The National Association of Insurance Commissioners (NAIC) reports what insurers collect per insured car. Its latest state data show the U.S. average expenditure rising about 14% in one year, from $1,124 in 2022 to $1,282 in 2023. The NAIC tables don't give reasons, and they stop in 2023.

For later years, the Bureau of Labor Statistics price index for motor vehicle insurance is the closest official measure. Annual increases were reported at about 20% or more in spring 2024 and slowed through 2025; by December 2025 the index was 2.8% above a year earlier. With May 2026 data it fell below its year-earlier level, by 2.0%, and in September 2026 it was 5.0% lower than in September 2025.

Changes in state law

Several states raised their minimum liability limits recently. If your policy carried the old minimum, it moved to the new one at renewal, and more coverage costs more:

North Carolina raised its minimum from 30/60/25 to 50/100/50 for policies written or renewed on or after July 1, 2025. The Department of Insurance said drivers who kept the old minimums can expect premiums to rise at renewal. The same change made drivers first licensed from that date pay the inexperienced operator surcharge for eight years instead of three, and made convictions with four or more points count for five years instead of three.
Hawaii doubled its minimums to 40/80/20 from January 1, 2026. The Insurance Division said the old limits no longer kept pace with medical and repair costs, and estimated the change may raise the premium by about 25% on average for many drivers.
Massachusetts moved to 25/50/30 from July 1, 2025, and New Jersey to 35/70/25 for standard policies from January 1, 2026.

If your state is on this list and your increase landed at the first renewal after the date, the new minimum is a likely part of it. Your state cost page has the current limits.

Causes on your own policy

Reading a renewal line by line (possible causes to ask about)
What changed	Possible cause
Every coverage up by a similar share	A rate change filed for everyone in your class or territory
Liability and PIP up more than the rest	A new or young driver, a violation, a higher state minimum
Collision and comprehensive up	A different car, a lower deductible, an at-fault claim
A discount line gone	A course discount or claims-free discount that ran out
All lines up after a move	A new rating territory at the garaging address

A ticket, accident or claim. Surcharges last for a set period that depends on the state and the insurer. Our page on driving record explains how they work.
A discount that expired. State-mandated course discounts last a set time: three years in New York after an approved accident prevention course, and 10% for three years in Delaware after a defensive driving course.
Your credit, where allowed. West Virginia's insurance regulator lists changes in insurance credit scoring among the reasons a bill can rise. Some states block this at renewal: Maryland, New York and Pennsylvania don't let insurers raise a renewal premium because of credit.
A new car or address. Both change the facts the price rests on, even when your record is unchanged.

What the insurer has to tell you

Some states require notice before an increase takes effect. Maryland requires a renewal increase to be mailed at least 45 days ahead, and if the increase stems from a claim or ticket you can complain within 30 days of the notice. In West Virginia, an auto liability rate increase of 15% or more must be published for public comment before the Insurance Commissioner acts on it. Illinois will require at least 30 days' notice before a renewal increase of more than 10% from July 1, 2027, under Senate Bill 714 (Public Act 104-0753).

If information in a credit report played a part, the Fair Credit Reporting Act requires an adverse action notice that names the credit bureau and tells you how to get a free copy of the report. Our guide to credit-based insurance scores covers what to do with it.

Questions to ask, then what to do

Ask which coverages went up and why, in writing: a rate change for everyone, or something about you?
Ask for the list of surcharges on the policy, the date of each violation or claim, and when each one ends.
Ask which discounts dropped off and whether you can earn them back, for example with a new course.
Check the facts the insurer used: drivers, cars, garaging address, mileage and any claims on your record.
Get three or more quotes on the same coverage and compare them line by line. Insurers weigh the same record differently.
Complain if a rule was broken, such as an old ticket still surcharged; our guide to complaining about a rate increase explains how.

Questions drivers ask

Why did my car insurance go up if I didn't have any accidents or tickets?

The insurer may have raised rates for everyone in your class or territory, your state's minimum limits may have gone up, a discount may have expired, or a change of car or address may have repriced the policy. Ask the insurer which one applies.

Are car insurance rates going down in 2026?

On average, yes. The BLS index for motor vehicle insurance was 5.0% lower in September 2026 than a year before. Individual renewals can still rise; dated changes are on rate news.

Can my insurer raise my rate because my credit got worse?

It depends on the state. California, Hawaii and Massachusetts don't allow credit in auto pricing and Michigan bars credit scores from auto rates; Maryland, New York and Pennsylvania don't allow a renewal increase because of credit.

How long does an accident raise my car insurance?

For a set period that depends on the state and insurer. Maryland bars increases for accidents or violations more than three years old; North Carolina surcharges convictions with four or more points for five years.

Where the figures come from

Facts on this page were checked against these sources on October 26, 2026. The spring 2024 peak of about 20% is as widely reported; the other index figures are BLS 12-month changes, not seasonally adjusted.