New Jersey drivers are facing the largest projected auto insurance rate increase in the country in 2026, with premiums expected to rise by 10.46% — far above the national average.
According to ValuePenguin’s State of Auto Insurance 2026 report, New Jersey is the only state expected to see a double-digit increase this year. The average nationwide increase is just 0.67%.
The Garden State also holds the unwanted distinction for the second consecutive year, according to reports tracking insurance rate changes. Nevada is projected to have the second-largest increase at 6.42%, followed by California at 6.13% and New York at 6.02%.
One major factor behind the increase is New Jersey’s higher minimum liability insurance requirements. Beginning in 2026, the minimum bodily injury liability limits increased again, from $25,000 per person and $50,000 per accident to $35,000 per person and $70,000 per accident. Higher required coverage can raise premiums, particularly for drivers who previously carried minimum-limit policies.
The increase comes after several years of rising insurance costs across the state. A New Jersey Monitor investigation found that state regulators approved more than 300 auto insurance rate increases since 2022, including dozens of double-digit hikes requested by individual insurers.
How much an individual driver pays can vary substantially depending on location, driving history, age, vehicle and coverage. Experian estimated the average New Jersey auto insurance cost at about $3,430 per year, or $286 per month, based on policies sold through its marketplace as of May 2026.
For New Jersey motorists already dealing with some of the country’s highest driving costs, the latest increase means another expense added to household budgets as policies come up for renewal.
Sources: ValuePenguin, New Jersey Monitor, Experian, ROI-NJ
By NJ RADAR Team