Updated April 2026 | NAIC 2026, NerdWallet, ValuePenguin, Bankrate
2026 Car Insurance Benchmarks: $208 National Average, +35% Since 2022
The state of US auto insurance in 2026. The 4-year YoY trend, the post-pandemic catch-up, the state extremes, and the stabilisation that began in 2025 to 2026.
The 4-year national YoY trend
US car insurance premiums rose approximately 35 percent between 2022 and 2026, the largest 4-year increase in the modern era of US auto insurance. The path:
- 2022: $155 per month national average. Carriers had under-priced through 2020 to 2021 due to pandemic-related claims drop and accumulated underwriting losses.
- 2023: $175 per month (+13 percent). Catch-up rate filings begin. Repair cost inflation peaks as chip shortage continues.
- 2024: $196 per month (+12 percent). Continued rate filings. Weather-related comprehensive claims elevated.
- 2025: $204 per month (+4 percent). Rate increases moderating as base rates catch up with loss costs.
- 2026: $208 per month (+2 percent). Rates stabilising in most states. Outlier states (FL, LA) continue above-trend.
The 5 most expensive states (2026)
The 5 cheapest states (2026)
The four drivers of the 2022 to 2026 surge
1. Repair cost inflation. Auto body shop labour rates increased approximately 22 percent from 2022 to 2026, per CCC Intelligent Solutions industry data. Parts costs rose approximately 30 percent driven by supply chain disruption, semiconductor shortages, and the increasing complexity of modern vehicles (ADAS sensors, EV components, aluminum body panels). The cost to repair a moderate fender-bender that was $4,500 in 2022 is approximately $6,000 in 2026.
2. Medical cost inflation. Bodily injury claim severity rose approximately 18 percent from 2022 to 2026, per Insurance Information Institute industry summaries. Medical CPI rose faster than general CPI throughout the period. Settlements and verdicts in serious injury cases trended higher, reflecting both medical cost inflation and lawyer-driven valuation creep.
3. Weather event frequency. NOAA tracks insured weather event losses; the cumulative 2020 to 2025 period saw record hail seasons in Colorado, Texas, and Oklahoma; multiple major hurricanes in Florida and Louisiana; and elevated wildfire activity in California, Oregon, and the Pacific Northwest. Comprehensive claim frequency in affected states rose 25 to 50 percent vs the 2015 to 2019 baseline.
4. Uninsured driver rate. The Insurance Research Council's 2024 study reported the national uninsured driver rate at approximately 14 percent, up from approximately 12 percent in 2019. Higher uninsured rates mean UM/UIM claim cost rises and gets spread across the insured population, lifting everyone's premium.