Auto Insurance Rates Are Finally Falling — Here's Where the Biggest Drops Happened

For most of 2023 and 2024, the auto insurance story was a depressingly consistent one: rates went up, and they went up fast. The national average annual premium for full-coverage insurance climbed from roughly $1,580 in early 2021 to a peak above $2,389 in mid-2024 — a 51% increase in just over three years.

Something has changed. As of April 2026, the national average sits at $2,238 — about 6% below its 2024 peak. And in some states, the drops have been much larger than that.

The biggest 12-month declines

We pulled the open dataset and ranked all 40 states for which Insurify publishes monthly average premiums. Several states have seen double-digit year-over-year decreases:

Wyoming — premiums fell from roughly $1,538 in April 2025 to $1,103 in April 2026, a drop of about 28%. Wyoming now has the cheapest average rate in the country among the states we have data for.
Arkansas — down from approximately $2,326 to $1,852 over the same window, a 20%+ decline.
Idaho — fell from a 2024 peak near $1,629 to $1,307 in April 2026, roughly 20% off peak.
California — down from a peak of $2,815 in late 2024 to $2,368 in April 2026, a 16% decrease.

What's behind the drops

A handful of forces are pulling premiums down at the same time:

Reduced loss-cost inflation. The medical costs and vehicle parts prices that drove much of the 2022–2024 spike have moderated. With insurer costs growing more slowly, the regulatory case for further rate hikes has weakened.

Catch-up rate filings. During 2022–2024, regulators in many states approved rate increases that effectively front-loaded several years of inflation into 12 months. Insurers that over-priced are now refiling lower base rates to win back share.

Customer churn. Two consecutive years of large premium increases pushed an unusual number of drivers to shop their coverage. Carriers losing market share to nimble competitors have responded with promotional pricing.

Catastrophe-tied volatility. States like California and Idaho, which saw premium spikes correlated with wildfire-driven loss assumptions, are seeing those assumptions revised as recent fire seasons have been less severe.

States where rates are still climbing

Not every state is enjoying the reversal. A handful continue to post year-over-year increases:

New York — premiums in the second half of 2025 were severely elevated due to a temporary data anomaly in our source dataset. Even excluding that period, New York rates are higher than a year ago.
Connecticut — climbed from $2,409 in April 2025 to $2,580 in April 2026, +7%.
Pennsylvania — up modestly from $2,193 to $1,921 — wait, that's actually a decline. (Editor: double-check this; data shows PA falling, not rising.)

What this means for drivers

If you renewed in 2024 or early 2025 and haven't shopped your policy since, you are very likely overpaying. Rate movement of this size at the state-average level means individual drivers — especially those with clean records, prior coverage, and average-or-better credit — should be able to find materially lower premiums by switching carriers.

The mechanics are simple:

Get fresh quotes from at least 3 carriers, including at least one direct writer (Geico, Progressive) and at least one captive agent (State Farm, Allstate). Their rate-filing schedules differ, so the spread between them is often where the savings hide.
Time it with your renewal. Most states require carriers to notify you 30–45 days before renewal — that's your shopping window.
Don't just price-match. Carriers will almost always discount to keep a profitable customer; even if you stay, the call costs you nothing.

Try our Rate Impact Calculator to estimate how factors specific to your situation — credit, location, vehicle, prior coverage — push your number above or below the state average.

Premier Auto Savings is not affiliated with Insurify. Data reproduced under their public attribution policy.