Why Car Ownership Costs More in Some States, and How to Cut Yours

Every week, The Verge Report answers a real question from readers, journalists or industry sources. This week's came from a journalist ranking all 50 states by the total cost of owning a car, covering insurance, repairs and fuel, who asked what's driving costs up or down and what drivers can actually do about it. Our answer focused on the part we know best: insurance.

Where Car Insurance Costs Stand in 2026

After several years of steep increases, 2026 has been calmer. Insurify puts the national average for full coverage at $2,237 a year in the first half of 2026, up only about 1%, with a projected $2,242 by year-end. The Zebra's 2026 report puts the national average at $2,256, up 3% year over year, and found premiums actually fell in 21 states plus D.C. The two sources use different methods, but both show the same story: the sharp rises have slowed.

What hasn't changed is the enormous spread between states:

Why Some States Consistently Cost More

No single factor explains it. High-cost states usually have several of these stacked together:

• Insurance rules: no-fault systems and higher required minimum coverage raise the base price of every policy.
• Litigation environment: states where more claims end up in court, or with bigger settlements, see higher premiums.
• Density and accident rates: more cars on crowded roads means more crashes and more claims.
• Theft and vandalism rates, which drive up comprehensive coverage.
• Weather and climate risk: hail, flooding and hurricanes mean more total-loss and comprehensive claims.

What Changed Most This Year

Rate relief has arrived, but unevenly. Price cuts have tended to reach drivers with clean records first, while drivers with accidents, tickets or poor credit have seen far less benefit.

Repairs are the pressure point. Insurify reports auto maintenance and repair costs have risen about 45% over the past five years. Modern cars are full of sensors and cameras, so even minor bumper damage can mean an expensive repair, which feeds straight into premiums.

EVs still cost more to insure. Insurify's analysis found insuring an electric vehicle costs roughly 42% more than a comparable gas car, largely because of repair and battery costs, although the gap has started to narrow.

5 Specific Ways to Lower Your Costs This Year

1. Compare quotes every 12 months, not just when your renewal notice arrives. Prices for the same driver can differ widely between insurers, and those differences shift from year to year.
2. Try a telematics (usage-based) program if you're a careful or low-mileage driver. Advertised maximum discounts run up to 25-40% depending on the insurer, but real savings are smaller: Consumer Reports found a median of about $120 a year (about $245 for younger drivers). Some insurers can also raise rates for risky driving, so read the terms.
3. Raise your deductible, but only if your emergency fund can cover it. Roughly a quarter of drivers say they couldn't afford their current deductible, so don't raise it beyond what you could pay tomorrow.
4. Bundle auto with home or renters insurance, which most major insurers discount.
5. Don't skip routine maintenance to save money. With repair costs up sharply, deferred maintenance is one of the most expensive false economies in car ownership.

If Car Costs Are Outpacing Your Income, Start Here

Look at insurance first. It's the one major ownership cost you can change in a single afternoon with real quotes, while changing the car itself, your commute or your fuel use takes much longer. Once you've shopped your coverage, look at your deductible and any coverage you're paying for but no longer need, such as collision cover on an old car worth very little.

Frequently Asked Questions