The cost of insuring a car in the US has been rising rapidly over the past couple years, jumping another 15% in 2024 nationally, but not everywhere.

Dropping comprehensive and collision coverage can cut costs — but is it an option for you? And should you do it?

North Carolina drivers will see their auto insurance rates decrease by 0.1% in 2025, making it the only state to experience a drop in rates this year, according to Lending Tree’s State of Auto Insurance 2025 report. But the report also says rates could spike in 2026. Here’s why.

Costlier cars or auto parts can increase claims costs, which take time to filter through to car-insurance rates.

KEY TAKEAWAYS Motor vehicle insurance increased by more than 2% in January and is more than double what it cost before the COVID-19 pandemic.Most American drivers say these prices are unaffordable, and many are going without insurance or reducing their coverage.