The auto insurance shock is finally fading — for most drivers. After premiums surged about 17% in 2024, prices actually fell during 2025, and 2026 is shaping up roughly flat: industry projections put the average increase around 1%, with full-coverage policies averaging in the $2,300–$2,500-a-year range nationally (about $200 a month).
The average hides a split market
Underneath the calm average, insurers are repricing risk aggressively. Drivers with a DUI have seen increases around 35%. Teen drivers and drivers with low credit-based insurance scores are also paying sharply more, even as clean-record, good-credit drivers see flat or falling renewals. The gap between the cheapest and most expensive risk profiles is the widest it has been in years.
One wildcard could reignite increases for everyone: tariffs on imported auto parts. Repair costs feed directly into premiums, and analysts estimate parts tariffs could add several points to premium growth if they persist.
What this means at renewal time
- Flat averages make shopping pay. When every carrier was raising rates 15%+, switching barely helped. In a flat market, the difference between carriers' models for your specific profile is the whole game — quotes on the same driver routinely differ by hundreds of dollars a year.
- If you're in a penalized group, shop harder, not less. Carriers weight a DUI, a teen on the policy, or a credit score very differently. The 35% average increase is an average of wildly different carrier decisions.
- Re-check your coverage levels. If your car's value has dropped, collision and comprehensive on a high deductible may no longer earn their premium. Run the numbers with our auto insurance calculator.
- Ask about telematics. Usage-based programs have matured, and for genuinely low-mileage or smooth drivers the discounts are now material.
Renewal notices are not verdicts — they are opening offers. Compare quotes side by side and see our insurance company reviews before you accept one.