Insurance Inflation Index: Car insurance rates show continued moderation

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Auto insurance prices, which moderated through the latter half of 2025, fell 0.3% in February 2026, continuing a stretch of softening rates after years of sharp increases.

The year-over-year trend has shifted dramatically from the double-digit increases seen in early 2024. The recent run of flat or negative monthly readings — including a 0.4% decline in January 2026 and a 0.4% decline in September 2025 — signals a meaningful easing of pressure on drivers’ wallets.

The slowdown in auto insurance inflation is welcome news for consumers, who saw car insurance prices surge sharply through 2023 and into 2024. Monthly increases of 0.9% to 1.2% were common through mid-2024 before the trend began to reverse.

Note: Data for October and November 2025 were not available at the time of publication.

Consumers continue the search for cheaper rates

Still, consumers — stirred by rising premiums over the past few years — are increasingly seeking lower rates. Despite the recent moderation, drivers are still paying higher rates, and many continue to shop around for better deals at renewal.

As consumers seek out cheaper insurance, it’s important to note that individual rates depend on many factors, including a person’s age, driving history, the car they drive, their coverage levels and where they live.

Other insurance segments

Health insurance prices fell 1.1% in February 2026, following a 1.0% decline in January — a notable reversal after months of modest increases averaging 0.3% to 0.6% through mid-2025.

Prices for tenants’ and household insurance rose 0.1% in February, a return to slight growth after December 2025’s 1.0% decline. Renters insurance had shown notable monthly increases of around 1.0% to 1.2% in the late summer and fall of 2025.

The BLS doesn’t track homeowners and life insurance.

Nupur Gambhir

Managing Editor

 

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Nupur Gambhir is the editor-in-chief of Insure.com and a licensed life, health and disability insurance agent in New York with seven years of experience covering insurance. Her expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Balance, The Financial Gym and MSN. She holds a BA in Economics from The Ohio State University.