TheZebra.com Finds Median Auto Insurance Premiums Now Cost $2,079 as Drivers Make Sacrifices to Stay on the Road

New report, The Growing Cost of Driving in 2026, reveals a state-by-state affordability breakdown, the impact of high gas prices and economic uncertainty, and more

AUSTIN, Texas--(BUSINESS WIRE)--TheZebra.com, the easiest way to compare and buy insurance, today released its newest State of Insurance report, The Growing Cost of Driving in 2026. The report finds that the median cost to insure a vehicle is now $2,079 per year ($173 per month) — roughly equivalent to the average cost of a two-bedroom apartment or two months of groceries for a family of four. While rates are stabilizing after years of steep increases, that figure only tells part of the story.

Americans across the country are feeling squeezed. New car prices are approaching $50,000, fuel is hovering around $4 a gallon, and the true cost of getting behind the wheel, which includes insurance, fuel, and vehicle costs combined, is pushing millions of American drivers to a breaking point. Drivers are cutting coverage, delaying car purchases and driving less just to make ends meet.

"The number that matters most isn't what you pay for insurance — it's what it costs you relative to everything else in your budget,” said David Seider, chief commercial officer at The Zebra. “When drivers in some states are spending 5% of their annual income just to stay insured, and nearly a third say they'd consider dropping coverage altogether if rates went up, that's a real affordability crisis. Our job is to help drivers find every advantage they can in a market that often feels like it's working against them."

The new report features The Zebra Premium Price Index (ZPPI), a proprietary metric that measures not just what drivers pay for insurance, but what it actually costs them relative to their income. Nationally, Americans spend approximately 2.55% of their annual income on auto insurance, but that number climbs as high as 5% in Louisiana, and the burden falls hardest on drivers with lower incomes and poor credit scores.

Additional key findings from the report include:

• Louisiana has the highest median annual premium at $3,342; Florida is close behind at $3,334. In comparison, Vermont, Wyoming and North Carolina are the most affordable, all under $1,400 per year.
• 11 states saw premiums decrease from 2025 to 2026; more than half of states saw minor increases averaging under $100. The biggest jump was in New Jersey, up $253 year-over-year.
• In 27 states, drivers with a DUI pay less than drivers with poor credit. Nationally, a poor credit score costs drivers a median of $1,805 more per year compared to drivers with excellent credit.
• 45% of American drivers would reduce coverage or raise their deductible if premiums increased 10%. Meanwhile, 29% would consider canceling coverage altogether. For younger drivers, this number is even higher, with 48% of Gen Z drivers saying they would cancel their coverage if costs rose 10%.
• 64% of drivers plan to keep their current vehicle until it's too expensive to repair — pushing the average U.S. vehicle age to an all-time high of 12.8 years.
• 61% of drivers reported being extremely or very concerned about the increasing costs of fuel. 57% reported driving less often to save money.

The report is based on a survey of 1,500 U.S. auto owners conducted in April 2026, combined with rate data generated by The Zebra's Dynamic Insurance Rating Tool (DIRT), which analyzes approved rate filings across all 34,500 U.S. ZIP codes.

“Rates are stabilizing nationally, but that doesn’t show the full picture at the state level,” said Seider. “The story isn't simply that insurance is getting cheaper or more expensive. It depends heavily on where you live, your credit score and who you're insured with. It’s more important than ever to shop around, speak to an agent and find the right coverage for your needs.”

To review the report in full, visit.

About TheZebra.com: TheZebra.com is the trusted partner for American insurance customers. People turn to The Zebra for easy-to-use services and tools and friendly, licensed advisors to get the insurance they need in a way that works for them. This ongoing relationship goes beyond a single transaction. For over 10 years, The Zebra has helped people across the country by providing guidance and solutions for their insurance needs. In today’s digital world, The Zebra’s customer-centered approach offers people the choices they want and simplicity they need.