US Car Insurance Costs Steady in 2026, but Tariffs Pose a Risk

US car insurance costs have broadly stabilised in 2026 following a decline the previous year, according to analysis from Insurify. The average annual full-coverage premium stands at roughly $2,240, with liability-only coverage around $1,176, after national full-coverage rates fell about 6% in 2025 and dropped in the majority of states. Insurify's analysts project the national average will edge up only about 1% by the end of 2026, a marked slowdown from the double-digit increases seen between 2022 and 2024, when inflation, costlier vehicle technology and more severe claims drove premiums sharply higher. The outlook is not without risks. A key uncertainty is US tariff policy: the full effects of tariffs on vehicles and parts have not yet flowed through to repair costs, which are expected to rise. If those higher costs feed into claims, Insurify estimates the national forecast could climb to an increase of about 4% by year-end. Pricing also continues to diverge, with drivers who have clean records generally seeing modest relief while higher-risk motorists face steeper increases.