What the car insurance inflation rate measures
The chart shows the 12-month change in the CPI index for motor vehicle insurance, which tracks premiums households pay for auto liability, collision and comprehensive coverage on comparable policies. The Bureau of Labor Statistics prices the same policy profiles over time, so changes reflect insurers’ rates rather than drivers choosing more or less coverage. The values are not seasonally adjusted. This series is not on FRED; we take it directly from the BLS data API.
How to read this chart
Insurance premiums are reset when policies renew, usually every six or twelve months, and rate increases need state approval in many places. That makes this line slow to turn: it reacts a year or more after insurers’ costs change. Readings above 10% are historically unusual; most of the time since the 1990s premiums have risen 2–7% a year.
The latest reading in context
- At −5.0%, the latest reading is below its 5-year average of 9.8% and below its 10-year average of 6.5%.
- That is lower than 99% of all monthly readings since January 1971 – near the bottom of its historical range.
- Direction: up 0.1 points over the past month; down 5.7 points over the past six months; down 8.1 points over the past year.
- The highest value on record is 32.8% (September 1976, 50 years ago); the lowest is −14.3% (May 2020, 6 years ago).
- The full history spans 7 US recessions, shaded grey on the chart.
Why it matters
Auto insurance is a required expense for most drivers, so increases are hard to avoid. After 2022 it became one of the fastest-rising items in the CPI and a large reason services inflation stayed high even as goods prices cooled. Because it is a service, it also feeds the core measures the Federal Reserve watches most closely.
What moves the car insurance inflation rate
- Repair costs: parts, labor and the sensors in newer cars
- Used and new car prices, which set payouts for totaled vehicles
- Accident frequency and severity, including medical and legal costs
- Weather losses from hail, floods and wildfires
- State rate approvals, which delay increases
Key moments in its history
- 1980sRose faster than overall inflation for most of the decade.
- 2020Fell as insurers refunded premiums during pandemic lockdowns.
- Apr 2024Rose about 22.6% from a year earlier, the largest increase since the 1970s.
- 2025Slowed as insurers’ rate filings caught up with costs.
Car Insurance Inflation data tables
Average by decade
| Decade | Average | High | Low |
|---|---|---|---|
| 2020s (so far) | 7.1% | 22.6% | −14.3% |
| 2010s | 4.8% | 9.7% | −0.2% |
| 2000s | 3.5% | 9.5% | −0.3% |
| 1990s | 4.3% | 8.9% | −0.8% |
| 1980s | 8.2% | 14.1% | 3.6% |
| 1970s | 7.2% | 32.8% | −2.1% |
Last 12 months
| Period | Value | Change |
|---|---|---|
| Sep 2026 | −5.0% | +0.1 pts |
| Aug 2026 | −5.1% | −0.7 pts |
| Jul 2026 | −4.5% | −0.3 pts |
| Jun 2026 | −4.1% | −2.1 pts |
| May 2026 | −2.0% | −2.2 pts |
| Apr 2026 | 0.2% | −0.6 pts |
| Mar 2026 | 0.8% | +0.6 pts |
| Feb 2026 | 0.2% | −0.4 pts |
| Jan 2026 | 0.5% | −2.3 pts |
| Dec 2025 | 2.8% | |
| Nov 2025 | n/a | not published |
| Oct 2025 | n/a | not published |
Monthly values. Decade figures are averages of the monthly values in each decade. The complete history is available as a CSV file.
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Car Insurance Inflation: questions and answers
Why did car insurance get so expensive?
Repair and replacement costs jumped with car prices and parts shortages after 2021, accident severity rose and insurers needed time to get higher rates approved, so increases arrived in 2023 and 2024.
Does this chart show my premium?
No. It shows the national average change for comparable policies. Individual premiums depend on location, driving record, vehicle and coverage.
Where does this data come from?
From the Consumer Price Index of the Bureau of Labor Statistics, series CUUR0000SETE, motor vehicle insurance in the U.S. city average.
Where does the data on this chart come from?
From the U.S. Bureau of Labor Statistics. ChartWidgets downloads the series (CUUR0000SETE) from the BLS public data API and checks for new releases every day. The last update was on November 1, 2026.