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HomeFinanceAutomobileHere's What Gas Prices Miss About The Real Cost Of Driving

Here’s What Gas Prices Miss About The Real Cost Of Driving



Here’s What Gas Prices Miss About The Real Cost Of Driving

Let’s start with the good news before we get to the grim bulletin on car insurance. According to Insurify, which tracks over 250 million policies, last year car insurance rates actually fell in 39 states. Sadly, they predict that they’re due to climb again, and if you compare the average rate at the end of 2021, $1,567, with the average rate today of $2,237 you’ll see a remarkably unpleasant increase of 43%. The Bureau of Labor Statistics says that the climb has been even steeper when measured from 2022 to today, rocketing up 56%. Which, yes, explains why some drivers are dropping comprehensive coverage.

And of course it gets worse. The ten most expensive places to insure a car are literally all over the map — but mostly on the eastern side of the U.S. There’s Washington, D.C., at a whopping $3,880 annually (actually down 7% so far this year), Maryland at $3,646, Rhode Island at $3,611, Michigan at $3,229, Georgia at $3,109, Delaware at $3,100, South Carolina at $3,075, and Nevada at $3,039.

Just below that miserable $3,000 mark is New Jersey, at $2,923. Don’t get excited, all you Real Housewives. You’re still spending $700 more than the national average for full-coverage in the Garden State. But Jerseyites and drivers in the Empire State ($2,840) each saw their rates fall 5% in early 2026. New Hampshire, the only state that doesn’t require auto insurance, remains dirt cheap (especially relative to D.C.), with an annual rate of $1,019.

Why the sharp rise? Quotefii, an insurance marketplace aggregator, blames a combination of forces, including, naturally, inflation (an expensive car costs more to replace), rising repair costs driven by the aforementioned inflation, and more extreme severe weather events, among other factors.



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