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“What’s Inflated. What Isn’t.”

Insurance Inflation: Why You Pay More for Coverage (2019–2026)

Track auto insurance inflation in 2026. Premiums are up 32% since 2019 — one of the most inflated categories. See what's driving costs higher.

Auto insurance has been the single most inflated major consumer category since 2020. The average full-coverage premium reached $2,280/year in 2024 before pulling back slightly to $2,150 in 2025 — still 32% above 2019. This page brings together all our insurance data and analysis. Compare with Inflation by Category and Inflation Since 2019 for the full picture.
The Auto Insurance Index: 2015–2025
Average annual full-coverage auto insurance premium (U.S.)
$1224.00$1480.80$1737.60$1994.40$2251.20$2508.002015$1502.002016$1555.002017$1600.002018$1630.002019$1560.002020$1620.002021$1730.002022$1950.002023$2280.002024$2150.002025
Source: Insurance Information Institute, Insurify, The Zebrakeepingupwithinflation.com
Then (2019)
$1,630/yr
Now (2025)
$2,150/yr
Change
+32%
Premium Increases
From $1,630/year in 2019 to $2,150/year in 2025 — a 32% increase. Premiums peaked at $2,280 in 2024 before a modest pullback. Even the 2025 decline represents premiums well above pre-pandemic levels.
Why Insurance Costs More
Modern vehicles are packed with expensive sensors and cameras ($8,000-$15,000 to repair vs $3,000-$5,000 for 2015 models). Medical costs from accidents keep rising. Distracted driving has increased accident severity. Climate-related catastrophe losses have increased reinsurance costs.
Will Insurance Get Cheaper?
Unlikely to return to 2019 levels. The structural cost drivers — vehicle repair complexity, medical costs, climate risk — are permanent. Rate increases may slow, but premiums have reset to a new baseline.
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