New Jersey motorists are seeing the steepest car insurance increases in the country this year, with premiums rising more than 10%, placing the state among the most expensive markets nationwide.
New data from a personal finance analysis show average auto insurance rates in New Jersey climbed 10.46% in 2026, the largest jump recorded across the United States. Overall, drivers now pay the ninth-highest premiums in the nation, adding pressure to household budgets already strained by higher living costs.
Rate Hikes Hit Most Policyholders
State regulators approved rate adjustments for the majority of insurers operating in New Jersey last year. Nearly 70 of the state’s 77 carriers received approval to raise premiums following actuarial reviews.
Officials with the Department of Banking and Insurance said each request is evaluated to determine whether it is reasonable and justified. Proposals considered excessive or unfair are rejected or reduced.
Regulators also noted they have blocked or trimmed hundreds of millions of dollars in requested increases in recent years to limit the impact on consumers.
