CarInsurance.com Insights
- Nearly 74% of drivers who saw a rate increase blame general inflation as the primary cause.
- 63% of drivers say they’d allow their insurer to track their driving in exchange for a discount.
- Despite rate hikes, only 13% of drivers switched insurers in the past year.
Nearly two-thirds of the policyholders who responded to our 2026 Insurance Sentiment Survey said their carrier had increased their auto insurance rates in the past 12 months, with the most common hike falling in the 5-10% range. Only 37% reported no increase.
Many of those surveyed say inflation is to blame for higher premiums. Although price drives many to consider shopping around for cheaper coverage, relatively few people actually switch car insurance companies — and 14% say they plan to switch in the next year.
Drivers blame inflation for rising car insurance rates
In early 2026, we surveyed 1,510 drivers nationwide to determine their attitudes about car insurance, inflation, driving habits and more. We asked people whose rates have increased during the past 12 months to identify the reason behind the price hike.
Nearly 74% of respondents blame general inflation for rising rates. But a significant share — 31% — point to insurers themselves, saying the drive to increase profits is behind higher premiums. About 27% say the rising cost of parts and repairs is the culprit, while 16% say severe weather is to blame.
The overall inflation picture has improved considerably from its 2022 peak. According to the U.S. Bureau of Labor Statistics, the Consumer Price Index rose 2.4% over the 12 months ending January 2026 — well below the elevated levels that drove the insurance rate surge of 2022–2024. The motor vehicle insurance index specifically rose just 0.5% year-over-year in January 2026, a dramatic slowdown from the double-digit annual increases drivers experienced in recent years.
However, motor vehicle maintenance and repair costs remain a persistent pressure point, rising 4.9% year-over-year according to BLS data — which helps explain why drivers attributing their rate increases to parts and repair costs are closer to the mark than they may realize.
Whatever the reason consumers cite, many are fed up. And with 14% of surveyed drivers saying they plan to switch insurers in the next 12 months, the market for new policies may be more active in the year ahead than current switching behavior alone would suggest.
Why are drivers switching insurers?
Despite widespread discontent over rising premiums, relatively few consumers are switching insurers. Only 13% of those who responded to our 2026 survey say they have switched carriers in the past 12 months.
Not surprisingly, price is the main reason why people switch. According to our survey, 74% of drivers who switched insurers say they did so because they found a cheaper premium. Some other reasons why people switch carriers include:
- I had a bad customer service experience with my former insurer: 6.7%
- My former insurer dropped me as a customer or would not renew my policy: 6.1%
- I moved to a state where my former insurer did not do business: 6.1%
- I had a bad claims-handling experience with my former insurer: 1.7%
Why people say their rates are increasing
Among those surveyed, 63% of drivers said their car insurance rates have increased in the past 12 months. The most common increase was in the 5-10% range.
The table below shows the full breakdown.
| Insurance rate increase | Responses |
|---|---|
| No increase | 37.2% |
| Increased less than 5% | 23.6% |
| Increased 5–10% | 27.7% |
| Increased 11–20% | 7.7% |
| Increased 21–30% | 2.0% |
| Increased more than 30% | 1.7% |
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What are drivers doing to save money on car insurance?
Most people we surveyed — 83.5% — said they haven’t changed or dropped their insurance in the past 12 months due to cost. However, a meaningful minority have taken action to reduce what they pay.
We also asked people if they had ever driven without car insurance — something that is not only illegal in most states but can also lead to higher rates in the future. Only 3.7% of those polled said they’d done so, with affordability cited as the primary reason among those who had.
The results break down as follows.
| Actions taken to save money on insurance | Results |
|---|---|
| No change | 83.5% |
| Canceled my policy | 4.5% |
| Increased my deductible | 4.1% |
| Dropped optional coverages (e.g., rental car reimbursement) | 3.1% |
| Lowered my liability limits | 2.9% |
| Dropped collision or comprehensive | 1.9% |
Why are car insurance rates still elevated?
In 2023 and 2024, average car insurance prices increased by double digits as insurers scrambled to recoup losses sustained from post-pandemic inflation, a surge in claims and supply-chain shortages.
The pace of increases has slowed considerably — the motor vehicle insurance index rose just 0.5% year-over-year as of January 2026, according to BLS data — but premiums remain historically high at an average of $2,513 per year for full coverage, according to CarInsurance.com data.
Rates remain high because of a high rate of uninsured drivers and a high volume of vehicle thefts, according to Mark Friedlander, director of communications for the Insurance Information Institute.
“Natural disaster losses will also be a factor as we see larger volumes of totaled vehicles from wildfires, hurricanes, floods and other severe weather events,” Friedlander said. “Other macro factors that will continue to impact the cost of auto coverage across the U.S. this year include more technologically advanced vehicles costing more to repair; distracted driving, such as texting while driving, leading to more accidents; a continued spike in litigated auto accident claims as billboard attorneys market their services to consumers to file suit following a crash; and rising health care costs to treat accident victims.”
And although repair cycle times have improved — the overall average cycle time for repairable vehicles is 19.3 days, down from 22.3 days a year ago, the total cycle time is heavily influenced by the number of advanced driver assistance systems (ADAS) affected, according to J.D. Power’s U.S. Auto Claims Satisfaction’s 2025 study. Average cycle times for vehicles wth no ADAS features is 17.9 days compared to 21.5 days for those with three or more ADAS features.
And claim severity continues to grow. Total losses account for 27% of claims, up from 24% a year ago and from 16% in 2022, according to J.D. Power. Smaller claims of $2,000 or less now represent just 20% of total claims, down from 21% in 2024 and 33% in 2022.
How do you feel about your insurance company?
We also asked drivers how they feel about their auto insurer. This was an open-ended question, with participants able to write their answers in their own words. Respondents expressed negative comments about pricing, corporate structure and trustworthiness.
However, there were many positive comments about people really liking their insurance companies and saying they trust them and like their services. There were also comments along the lines of “I like them, but they’re expensive.” Affordability was a major complaint.
Here is a brief selection of some of the responses we received:
- “Very trustworthy and secure with good benefits.”
- “They raise rates too much even without a claim.”
- “Too expensive compared to advertised prices from other insurers.”
- “They have a local agent, and that office is very responsive and reliable.
- “They meet my needs and I’m happy with their coverage on my plan.”
- “They’re pretty good but I’m considering shopping around for better options.”
- “They’re fine. I think auto insurance has gotten insanely expensive just like everything else.”
- “They seem to be misleading and rather convoluted.”
- “Tariffs are driving up repairs.”
- “The rates are constantly becoming too expensive, no matter if you are a good driver.”
- “They provide good service but the premiums are getting out of control.”
- “They’re a scam.”
- “They are just a part of life.”
- “They charge a lot but people get into accidents so I understand.”
- “My insurance company is squeezing every penny out of me.”
- “Overall, we are happy with our auto insurance company. We have been with them for over 25 years and have not had any problems.”
- “Reputable, prestigious and overpriced.”
- “I trust them completely.”
- “I like them. After tracking my driving, my premium decreased.”
- “Insurance companies are a necessary evil.”
- “I feel that my insurer and all insurers use too many stats to figure (out) the cost of premiums. Stats that don’t pertain to me.”
Have you filed a claim in the past year?
While price is often a primary concern, many policyholders say customer service is essential. We asked survey participants if they had filed a claim within the past 12 months. The vast majority (85.6%) said no.
However, most (88.2%) of those who filed a claim said they were satisfied with the service they received. We also asked people who filed a claim how long it took to resolve it because fast service is a priority for many drivers.
The results break down as follows.
| How long it took for a claim to be resolved | Results |
|---|---|
| 1 to 2 weeks | 33.2% |
| 3 to 4 weeks | 27% |
| 1 to 2 months | 21.8% |
| 2 to 6 months | 12.3% |
| 6 to 12 months | 2.8% |
| Longer than 12 months | 2.8% |
How drivers can save on car insurance
While you can’t control inflation, you can shave some dollars off your insurance premium.
“When looking at inflationary issues, you’re going to get hit from every direction – from buying a car, gas and the insurance for the car,” says Loretta L. Worters, vice president of media relations for the Triple-I. “It’s a good idea when shopping for a vehicle to check with your insurer to see the cost before you buy it.”
Here are other ways to save on car insurance:
- Here are other ways to save on car insurance:
- Think twice between leasing or financing a vehicle. “You’ll need to pay for collision insurance as well as liability, which can significantly increase your premiums,” she says.
- Consider buying a cheaper or safer car. Vehicle choice has a direct impact on what you pay to insure it.
- Take a defensive driving course. A defensive driving course can shave 5-20% off your car insurance premium.
- Pay upfront or sign up for autopay. Some insurers will reduce your premium by 3-5% for paying in full or enrolling in automatic payments.
- Bundle your insurance. Bundling home or renters insurance with your auto policy is one of the most consistent ways to keep premiums manageable.
- Consider telematics. Our survey found that 63% of drivers would allow their insurer to track their driving in exchange for a discount — and safe drivers can save up to 30% through these programs. If you’re comfortable sharing your data, it may be the single most effective cost-cutting move available.
- Compare rates from several insurers. Getting quotes from multiple insurers remains one of the most reliable ways to find affordable coverage. Shop every one to two years, or whenever you experience a sharp rate increase or significant life change.
Final thoughts: Car insurance and inflation
As our survey shows, most drivers are still feeling the weight of elevated car insurance rates — even as the pace of increases slows meaningfully. Nearly two-thirds saw their premiums rise in the past 12 months, and general inflation remains the dominant explanation. The BLS data offers some validation: while overall inflation has cooled to 2.4%, repair and maintenance costs are still running nearly 5% higher year-over-year, keeping upward pressure on what insurers pay out on claims.
The good news is that the motor vehicle insurance inflation index itself rose just 0.5% year-over-year in January 2026 — a sign that the worst of the rate surge is behind us.
But with premiums at $2,513 a year on average and tariffs still an unknown variable, consumers will need to stay aggressive: shopping strategically, exploring telematics discounts, adjusting coverage levels and maximizing every discount they qualify for.
Resources & Methodology
Sources
J.D. Power. “Satisfaction with Auto Insurance Claims Strained by Higher Deductibles, More Total Losses, JD Power Finds.” Accessed April 2026.
U.S. Bureau of Labor Statistics. “Consumer Price Index: February 2026.” Accessed April 2026.
Methodology
CarInsurance.com commissioned Dynata in March 2026 to field a survey asking 1,510 people about their insurance products, 1,415 of whom reported having auto insurance. CarInsurance.com commissioned Quadrant Information Services to get car insurance rates. The rates are based on the sample profiles of 40-year-old male and female drivers carrying full coverage policies with limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.
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