In April, I reported that car insurance inflation had slowed to 0.8% a year (The Savings Mentor, April 14). Three months later, the trend has gone further. Car insurance is now getting cheaper.
What the new numbers show
The Bureau of Labor Statistics released its June inflation report this morning (BLS, CPI for June 2026):
- Motor vehicle insurance fell 2.0% in June, after falling 1.7% in May and 1.7% in April (seasonally adjusted).
- Over 12 months, the index is down 4.1%.
- Overall consumer prices were up 3.5% over the year, down from 4.2% in May, as gasoline fell 9.7% in June but remained 26.7% higher than a year earlier.
Put simply, car insurance has moved from one of the fastest-rising household costs to one of the few that is falling.
The cost that has not fallen
One number in the same report points the other way. Motor vehicle maintenance and repair rose 7.0% over the year, up from 6.1% in March (BLS, March).
Repair costs feed directly into what insurers pay on collision and comprehensive claims. That is the main reason not to expect every premium to fall, and why the decline may be uneven across drivers, vehicles and coverages.
What the policy actually says
A falling national index does not change your policy automatically. Your renewal is priced from your own rating factors and your insurer's filed rates for your state (NAIC). Look at your renewal offer in three layers.
- The total premium. Compare it with last year's. If it rose while the national index fell 4.1%, ask why.
- The coverage lines. Liability, collision and comprehensive are priced separately. Check which one changed.
- Your rating details. Drivers, vehicles, garaging ZIP code, annual mileage and discounts must all be accurate. A wrong mileage figure or a missing discount can cost more than the national trend saves.
How to capture the decline
- Ask your current insurer first. Request a review of your rate and every discount you qualify for: multiple policies, continuous coverage, safe driving, good student, defensive driving.
- Get competing quotes for identical coverage. The NAIC advises comparing quotes on the same limits and deductibles, so you compare price, not coverage ( NAIC ).
- Time it. Start shopping 30 to 45 days before your renewal date, so you can switch without a gap in coverage.
- Do not cut liability to chase a lower price. A market in your favor is the time to buy better protection at the same cost, not less protection.
Coverage check
The bottom line: this year, the market is moving in drivers' favor. Insurers will not pass that along unless you ask. Compare your renewal with the trend, shop identical coverage, and make the decline show up on your own bill.
Sources
- U.S. Bureau of Labor Statistics, Consumer Price Index, June 2026 , released July 14, 2026
- U.S. Bureau of Labor Statistics, Consumer Price Index, March 2026 , released April 10, 2026
- National Association of Insurance Commissioners, Tips for Saving on Your Auto Insurance
- National Association of Insurance Commissioners, Comparing Online Auto Insurance Quotes
Insurance rules and prices vary by state and insurer. This article is for general information, not individual advice; consult a licensed insurance professional for your situation.