Auto Insurance
The cost of car insurance
The national median cost of auto insurance in the U.S is $2,340 annually ($195/mo). This represents a 1.25% increase nationally compared to this same time a year ago, according to our analysis of sample auto insurance quotes provided by Quadrant Information Services for over 34,000 U.S. ZIP codes.
However, in some states, like New Jersey and Iowa, premiums have increased an average of more than 15%. Conversely, car insurance rates in Rhode Island are down 22%, Washington D.C. saw a 17% drop in premiums, and West Virginia drivers are paying 12% less vs. 2025.
How much is car insurance in my state?
Louisiana, Florida and New Jersey are the most expensive states for auto insurance.
Wyoming, Vermont and New Hampshire are the cheapest states for auto insurance.
Here's how car insurance rates changed in each state over the last year:
| State | Average annual rate | Change vs. 2025 (%) |
|---|---|---|
| Alabama | $2,196 | 6.8% |
| Alaska | $1,856 | 9.3% |
| Arizona | $2,924 | 10.8% |
| Arkansas | $2,687 | 8.6% |
| California | $1,940 | 1.6% |
| Colorado | $3,238 | 5.9% |
| Connecticut | $2,775 | 8.8% |
| Delaware | $2,647 | 2.6% |
| Florida | $4,069 | 2.5% |
| Georgia | $3,248 | 6.6% |
| Hawaii | $1,919 | -3.7% |
| Idaho | $1,910 | 11.8% |
| Illinois | $2,498 | 7.1% |
| Indiana | $1,922 | -2.1% |
| Iowa | $2,223 | 16.1% |
| Kansas | $2,565 | 0.8% |
| Kentucky | $3,258 | -0.5% |
| Louisiana | $4,492 | 12.5% |
| Maine | $1,663 | 11.8% |
| Maryland | $3,085 | 12.1% |
| Massachusetts | $1,850 | 0.3% |
| Michigan | $3,134 | -0.3% |
| Minnesota | $2,502 | 9.2% |
| Mississippi | $2,564 | 4.7% |
| Missouri | $2,771 | -0.8% |
| Montana | $2,794 | 12.3% |
| Nebraska | $2,114 | 3.4% |
| Nevada | $2,851 | -7.8% |
| New Hampshire | $1,555 | 6.4% |
| New Jersey | $3,664 | 15.8% |
| New Mexico | $2,279 | 0.2% |
| New York | $2,608 | -0.4% |
| North Carolina | $1,780 | -7.8% |
| North Dakota | $2,234 | 8.5% |
| Ohio | $1,697 | 3.2% |
| Oklahoma | $2,734 | -1.8% |
| Oregon | $2,126 | 7.7% |
| Pennsylvania | $2,227 | -1.6% |
| Rhode Island | $2,675 | -21.8% |
| South Carolina | $2,532 | -7.4% |
| South Dakota | $2,118 | -0.1% |
| Tennessee | $2,384 | 3.1% |
| Texas | $3,323 | -7.3% |
| Utah | $2,282 | 10.1% |
| Vermont | $1,503 | 13.7% |
| Virginia | $2,018 | -0.3% |
| Washington | $2,320 | 3.7% |
| Washington, D.C. | $2,533 | -16.8% |
| West Virginia | $2,138 | -12.4% |
| Wisconsin | $2,311 | 1.9% |
| Wyoming | $1,148 | 3.6% |
Why did my car insurance rates change?
You may be wondering why your auto insurance rates are so high. Here are some common reasons and how they can affect your rates.
Credit
For drivers with poor credit, the median rate for car insurance is $3,930 a year — 68% higher compared to those with good credit.
Age
Your age can greatly affect your rates. A 35-year-old with good credit and a clean driving record pays an average of $2,340 a year for full coverage auto insurance — significantly lower compared to 20-year-olds ($4,765) but higher than what 60-year-olds pay ($2,010).
Driving history
Drivers at-fault for an accident can expect to see 48% higher car insurance premiums ($3,460/yr) compared to those with a clean driving record. Drivers with a recent DUI pay around 87%, more for full coverage, while those with a speeding ticket see a 27% average increase to their premiums compared to those with a spotless record.
Type of car
The make and model of your car will affect your rates. The Subaru Outback, Subaru Crosstrek and Subaru Forester were the three cheapest cars to insure, among best-selling new models.
Some states limit what insurers can consider when determining car insurance rates. For example, California, Hawaii and Massachusetts block the use of credit in setting rates.
Home Insurance
The cost of homeowners coverage
The national median cost of home insurance in 2026 is $2,490 annually ($210/mo) — a 6% increase from last year — according to our 2026 analysis.
How much is homeowners insurance in my state?
Oklahoma, Nebraska and Kansas are the most expensive states for homeowners insurance.
Hawaii, Vermont and Delaware are the cheapest states for homeowners insurance.
If you're looking for the best deal, consider options like Progressive and State Farm — two of the most widely available and affordable home insurers in the U.S.
Estimate your costs: Check out NerdWallet's home insurance calculator to see how much average homeowners insurance rates are in your ZIP code.
Here's how much homeowners insurance rates changed by state:
| State | Average annual rate | Change vs. 2025 (%) |
|---|---|---|
| Alabama | $4,285 | 2.5% |
| Alaska | $1,385 | 0.9% |
| Arizona | $3,415 | 17.8% |
| Arkansas | $4,955 | 13.8% |
| California | $1,820 | 5.1% |
| Colorado | $3,910 | 7.8% |
| Connecticut | $2,135 | 2.5% |
| Delaware | $1,365 | 8.4% |
| Florida | $2,845 | -0.4% |
| Georgia | $3,225 | 2.3% |
| Hawaii | $900 | 4.8% |
| Idaho | $2,195 | 20.3% |
| Illinois | $3,240 | 6.6% |
| Indiana | $2,985 | -0.9% |
| Iowa | $3,765 | 10.8% |
| Kansas | $5,455 | 3.6% |
| Kentucky | $3,795 | -5.0% |
| Louisiana | $2,020 | -38.0% |
| Maine | $1,525 | -3.2% |
| Maryland | $2,375 | -5.8% |
| Massachusetts | $1,645 | -4.2% |
| Michigan | $2,415 | 1.8% |
| Minnesota | $3,615 | 6.6% |
| Mississippi | $4,445 | -7.2% |
| Missouri | $3,805 | -2.5% |
| Montana | $3,765 | 5.2% |
| Nebraska | $6,015 | -0.9% |
| Nevada | $1,635 | 2.4% |
| New Hampshire | $1,500 | 3.5% |
| New Jersey | $1,480 | -0.2% |
| New Mexico | $2,800 | -0.9% |
| New York | $1,710 | 3.6% |
| North Carolina | $3,025 | -15.1% |
| North Dakota | $3,510 | -0.1% |
| Ohio | $2,080 | 2.7% |
| Oklahoma | $7,255 | -6.8% |
| Oregon | $1,705 | 3.0% |
| Pennsylvania | $1,720 | -0.3% |
| Rhode Island | $2,230 | -22.6% |
| South Carolina | $3,205 | 6.9% |
| South Dakota | $3,965 | -6.0% |
| Tennessee | $4,220 | 9.0% |
| Texas | $4,915 | -2.7% |
| Utah | $1,810 | 2.7% |
| Vermont | $1.170 | -3.1% |
| Virginia | $2,265 | 15.5% |
| Washington | $1,880 | 4.9% |
| Washington, D.C. | $1,645 | 2.2% |
| West Virginia | $2,465 | -5.6% |
| Wisconsin | $2,175 | -0.4% |
| Wyoming | $1,805 | -4.0% |
Why did my home insurance rates change?
Where you live isn't the only factor that can affect your homeowners insurance rates. Here are some other common factors.
Credit
Homeowners with poor credit pay an average of $4,288 a year for insurance, a 72% increase compared to those with good credit.
Age of house
Newer homes can be cheaper to insure compared to older ones because they're typically built with modern materials that cost less to replace, among other factors. Older homes, meanwhile, are more likely to be constructed with ornate features, older materials (like plaster walls), or outdated plumbing (like galvanized steel) that are expensive to replace or more prone to loss compared to what’s used today, making older homes pricier to insure. A house built in 2025 costs 75% less to insure on average compared to a home built 40+ years ago.
Amount of coverage
The amount of dwelling coverage in your policy — which pays to rebuild or repair your home after a covered loss — can significantly affect homeowners insurance rates. A policy with a $200,000 dwelling coverage limit costs an average of $1,478 per year — 69% cheaper than a policy with double the amount of dwelling coverage — while a home insured for $800,000 costs roughly 44% more in premiums compared to one with $400,000 in dwelling coverage.
Previous claims
Having a recent claim (within 3–5 years) can also have a significant impact on your home insurance premiums. Insurers have found that homeowners with certain claim types (like water damage, dog bites, theft) or small-dollar losses (a settlement amount less than twice your policy deductible) on their record are more likely to file future claims compared to those with a record of no or less repeatable claims (such as a single large-dollar storm damage claim). That said, homeowners with a single recent claim pay 9% more on average compared with those with no recent claims.
Having poor credit increases your annual premium more than filing a claim on your policy does. If you're a homeowner with poor credit, consider shopping around for quotes to get the best rate.
Don't own a house? Explore NerdWallet's helpful resources on renters insurance and condo insurance.
State of the Insurance Industry
A majority of U.S. homeowners (54%) say their insurance premiums increased in the past 12 months, according to a 2025 NerdWallet survey conducted by The Harris Poll among more than 1,300 adults.
Response to rising rates
More than 1 in 10 homeowners (11%) say they’re considering getting rid of their homeowners insurance in the next year, an approach that could lead to financial disaster if their home is damaged.
Lying when applying
In 2024, a NerdWallet study found that more than 1 in 5 Americans (21%) admitted to lying on an insurance application. Of those who said lying was acceptable to get lower rates, 45% said it’s because they want to save money and 38% pointed to rates increasing too much.
Getting the best deal
Lying on an application or dropping coverage can have unexpected consequences. “Instead, find savings by asking your insurance provider about potential discounts, and shop around for better rates,” says personal finance Nerd Melissa Lambarena.
Why rates are changing
Insurance rates can fluctuate frequently, due to multiple economic factors. In recent years, rates as a whole have increased. Some insurers have stopped writing policies in money-losing states, like California, where regulators have made it difficult for insurers to raise rates. And in disaster-prone Florida, most major insurers have pulled out, significantly limiting the pool of insurers to choose from for residents in the Sunshine State.
Here's a look at three top reasons that cause insurance rates to change.
Inflation
Inflation has increased the cost of doing business for insurers, from rebuilding homes and repairing cars to covering more expensive medical costs. Because insurers have to pay out higher claims, they may raise premiums to help cover the added expense.
Climate change
Natural disasters are increasing in frequency, and few states are insulated from them. From wildfires on the West Coast to hurricanes affecting the East Coast, these events lead to more claim payouts from insurers. That's compounded by the fact that more people are moving to disaster-prone states like Florida and Texas.
Rising reinsurance rates
Insurance companies also need insurance, which is known as reinsurance, to help pay out claims. Reinsurers are typically global companies that respond to disasters worldwide, so even events far from home — such as wildfires in Australia and earthquakes in Turkey — can lead to higher premiums for you.
Many insurers will offer a discount if you purchase a home and auto insurance bundle from them. Although discounts vary, you can save on average 18% by bundling, according to NerdWallet's analysis of rates from Allstate, Farmers, Nationwide and State Farm.
Are your rates too expensive? Here are some top ways to get the cheapest car insurance rates and the cheapest homeowners insurance rates.
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Methodology
To calculate auto and home insurance rates, NerdWallet averaged rates based on public filings obtained by pricing analytics company Quadrant Information Services. These are sample rates, and your own rates will be different. We conducted the analysis in April 2025.
Auto insurance
For auto insurance, we examined median rates for 35-year-old men and women for all ZIP codes in all 50 states and Washington, D.C. Although it's one of the largest insurers in the country, Liberty Mutual is not included in our rates analysis due to a lack of publicly available information.
In our analysis, “good drivers” had no moving violations on record; a “good driving” discount was included for this profile. Our “good” and “poor” credit rates are based on credit score approximations and do not account for proprietary scoring criteria used by insurance providers.
We used a 3-year-old Toyota Camry LE for all drivers and assumed 12,000 annual miles driven.
Sample drivers had the following coverage limits:
- $100,000 bodily injury liability coverage per person.
- $300,000 bodily injury liability coverage per crash.
- $50,000 property damage liability coverage per crash.
- $100,000 uninsured motorist bodily injury coverage per person.
- $300,000 uninsured motorist bodily injury coverage per crash.
- Collision coverage with $1,000 deductible.
- Comprehensive coverage with $1,000 deductible.
In states where required, minimum additional coverages were added. We used the same assumptions for all other driver profiles, with the following exceptions:
- We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for drivers with poor credit.
- For drivers with one at-fault crash, we added a single at-fault crash that happened six months ago, resulting in $10,000 in property damage and no bodily injury claim.
- For drivers with a DUI, we added a single drunken driving violation that happened six months ago.
- For drivers with a ticket, we added a single speeding violation for driving 16 mph over the speed limit.
Homeowners insurance
For homeowners insurance, we calculated median rates for 40-year-old homeowners from a variety of insurance companies in the 25 largest cities in each state by population. All rates are rounded to the nearest $5.
Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1984. They had a $1,000 deductible and the following coverage limits:
- $300,000 in dwelling coverage.
- $30,000 in other structures coverage.
- $150,000 in personal property coverage.
- $60,000 in loss of use coverage.
- $300,000 in liability coverage.
- $1,000 in medical payments coverage.
We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren't available.
We used the same assumptions for all other homeowner profiles, with the following exceptions:
- For homeowners with a claims history, we added a single wind damage claim.
- We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for homeowners with poor credit.
- To see the effect of changing your dwelling coverage amount, we changed the limit to $200,000 or $500,000. This also changed some of the other coverage limits that were tied to the dwelling coverage amount. For example, the other structures coverage limit is typically 10% of the dwelling coverage amount, so our sample policy with $200,000 of dwelling coverage had $20,000 of other structures coverage.