New Jersey drivers are expected to see the largest increases in car insurance premiums in the country in 2026, according to a new industry analysis.

A recently released report by ValuePenguin estimates that auto insurance rates in New Jersey could rise by 10.46% when policies renew in 2026, the largest projected increase of all 50 states.

The anticipated increase contrasts sharply with national trends. Across the United States, car insurance premiums are expected to rise by less than 1% on average in 2026, marking the smallest year-over-year increase since before inflation-driven spikes earlier in the decade.

The states trailing New Jersey with the highest expected increases this year are Nevada, California and New York, all of whom are averaging 6% increases.

The report also found that insurance costs in New Jersey can climb significantly after accidents. Drivers in the state may see premiums rise by about 74% following an at-fault crash, with average monthly full-coverage costs reaching approximately $433 afterward.

One main reason for the increase is due to recent legislative changes which mandated increased coverage from $25,000 per person/$50,000 per accident for bodily injury to $35,000 per person/$70,000 per accident for bodily injury liability.

Rate changes will vary by insurer. Among midsize companies operating in New Jersey, NJM policyholders could see average premium increases of about 21.18%, while Erie Insurance rates may rise about 7.92% and Plymouth Rock premiums about 6.24%, according to the analysis.

New Jersey residents already face some of the highest housing-related costs in the country, with property owners in the state continuing to have the highest effective property tax rate in the United States, according to recently released state data.

And its not just insurance rates and property taxes which are going up in New Jersey: In the last month alone, tolls went up on every major highway and river crossing in the state, along with the state imposed gas tax.

Nationally, the report suggests the pace of insurance price increases is stabilizing after several years of sharp growth driven by inflation, rising repair costs, and expensive claims. Still, state-level factors — including regional claims costs, regulations, and insurer filings — continue to produce wide differences in how premiums change from one state to another.

The projections are based on rate filings by insurance companies in 2025 that will affect policies renewing in 2026, according to the report.