Auto insurance increases 64% over 5 years, policy shopping still high

Moneywise reports that between September 2020 and September 2025, auto insurance premiums increased by more than 64%, while the general inflation rate was 25%.

“Meanwhile, insurers have been posting near-record profits,” the article states. “Underwriting profits across property and casualty insurers, which includes home and auto, hit their highest level in almost 20 years in 2024, at nearly $27 billion, according to a S&P Global Market Intelligence report.”

According to the Wall Street Journal, United Policyholders Executive Director Amy Bach stated, “The near-record profits are fueling tremendous anger … among people in every state.”

Now, some state lawmakers are responding, the article reports:

• • New York Governor Kathy Hochul is pushing for profit caps on insurers
  • Illinois lawmakers introduced a bill to rein in “excessive” rates, which nearly passed the House in 2025. “It came on the heels of a 27% average rate hike by State Farm for home insurance policyholders across the state last summer.”

According to J.D. Power’s latest Loyalty Indicator & Shopping Trends (LIST) report, Q4 insurance shopping declined by less than half a percentage point to 13%, while switching declined by about the same to 4.1% compared to Q3.

Among those who switched, the median amount of premium moving carriers was more than $3,200, according to the report.

The report also states that consumers with lower credit-based insurance scores have driven most of the shopping activity. It adds that for most of the year, the Northeast region dominated shopping activity, but by September, the West nearly matched it.

A recent report from MarketWatch shares the realities some drivers are facing in the current U.S. economy as they shoulder more obligations and risk when buying auto insurance and attempting to manage monthly costs, including higher deductibles and paying for repairs out-of-pocket.

Fitch Ratings’ North American insurance group and The Zebra, an insurance shopping website, told MarketWatch they don’t see premiums coming down anytime soon.

LexisNexis U.S. Auto and Home Insurance Senior Vice President and General Manager Jeff Batiste said he expects elevated rates of consumers shopping around for insurance to continue this year.

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