Five states have median annual car insurance premiums of $2,676 or more, with Louisiana highest at $3,342, where residents spend 5.1% of income on insurance, over twice the national average. The national median rose to $2,079 in 2026. Rates are stabilizing or dropping in many states due to insurers paying fewer claims. Rising costs are linked to advanced vehicle technology, inflation increasing parts prices by nearly 30%, lawsuits, and pandemic-related rate freezes.