In 2025, car insurance premiums did something they rarely do — they fell 6%. But that relief appears to be fading.

Insurance comparison company Insurify reports 27 states have already seen rates increase in the first half of this year. By the second half, that number could climb to 32 states.

"Tariffs and the overall economic pressure are putting a lot of pressure on the repair parts and the repair costs," said Insurify founder and CEO Snejina Zacharia.

RELATED STORY | Average new car price nears $50,000, squeezing middle-class buyers

Insurify now projects a 1% rate hike overall, pushing the average cost of full coverage above $2,200.

Watch as Insurify shows ways to lower your rising auto insurance:

Auto insurance going up again: How to fight back

Increased costs affecting all drivers

Zacharia said not even the safest drivers are protected from insurance price increases.

"The prices are impacted based on third party data trends that have nothing to do with the customer specifically," she said.

In addition to tariffs and repair costs, severe weather and more serious crashes are contributing to price hikes.

"Over the last few years, with the severity of the storms, the severity of rainfall, or in some cases, earthquakes, all of this impacts both auto and home insurance rates," Zacharia said.

Ways to lower insurance costs

Diane Smith watches every dollar and shops at discount stores for savings. Still, she admits she hasn't been keeping a close eye on her insurance bill.

"Because everything is on autopay, I don't even look at it," she said.

But checking premiums and deductibles on a regular basis can help drivers take more control over what they pay for coverage.

If you've had the same carrier for years, don't assume loyalty pays off. Shopping around can make a significant difference.

"For the same exact driver, one carrier could be charging 20% to 30% more," Zacharia said. "Some of our customers report that they save an average $1,000 or more on their car insurance just by shopping."

RELATED STORY | The hidden risk in your insurance policy: Why state minimums may not save you

Another option is raising your deductible to lower your monthly payment — though Zacharia cautions that approach isn't right for everyone.

"Sometimes people don’t need to switch their policy and all they need to do is play with the deductible, assuming that they can afford to pay a higher deductible based on their risk profile," she said.

With insurance, gas and groceries all costing more, every dollar counts. So shop around for better rates, so you don’t waste your money.

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