CCC Crash Course explores consumer affordability pressures

CCC’s Crash Course 2026 explores consumer affordability pressures, such as insurance and vehicle costs, that are changing the dynamic of vehicle claims. 

Inflation, interest rates, and economic uncertainty pressures persist post-pandemic, causing consumer financial strain that has led to affordability challenges that influence whether consumers will maintain full coverage, scale back protections, or even drop insurance, the report says. 

The report points to a Guardian Service survey conducted in Q2 2025, which found that 35% of consumers delayed or canceled plans to purchase home insurance, car insurance, or both. 

While 77% view car insurance as a necessity, nearly 1 in 4 people downgraded or dropped insurance. Another 1 in 3 said they would temporarily go without insurance to free up funds. 

Eight percent downgraded from full coverage car insurance to liability. 

The report also notes a J.D. Power 2025 U.S. Auto Claims Satisfaction Study that found 7% of auto insurance customers avoided filing a claim for fear that rates would rise, and 26% had deductibles of $1,000 or more. 

CCC’s data show that the share of $1,000 or higher deductibles has increased by over 3.5 percentage points in the past year and over 6 points over the past two years. 

Deductibles at $500, which remain the most common for first-party claims, also decreased by over 7 percentage points in the past year, according to the report. 

“When comparing $1,000+ deductibles for claims by condition and coverage (both first party), we find a couple of noticeable differences,” the report says. “First, total loss claims have a higher share within the $1,000+ segment. Collision total loss claims saw a 6.2 percentage point differential in 2025, while comprehensive claims saw a 4.4-point variance compared to repairables.”

This could be because repairable claims are less likely to be reported if the vehicle is repairable and a high deductible exists, CCC says. It adds that there is less flexibility in whether to file a claim with a total loss. 

When looking at vehicle sales, the report quotes data from the St. Louis Federal Reserve, which found new light vehicle sales increased by 2.4% in 2025 with more than 16.2 million vehicles sold. It adds that this is the highest volume post-pandemic. 

Yet, both Cox Automotive and Edmunds predict that 2026 sales will decrease by 2-3%, the report says. It adds that 2025 sales volumes also remain 714,000 units lower than 2019. 

“Average new vehicle prices and high interest rates are just two factors that continue to stifle new vehicle sales growth,” the release says. “That’s interesting to consider is that over the past five years (2021-2025), nearly 7 million fewer vehicles were sold compared to the prior five-year period (2016-2020), a time marked by pandemic-related disruptions.”

While fewer new vehicles are on the roadways, vehicles in operation have reached 296 million as of Q3 2025, an increase of 6% compared to 2019. 

Multiple data sources show that the price of new vehicles increased in 2025, with the average transaction price (ATP) exceeding $50,000 for the first time in September. 

“Based on Edmunds’ financing data, it’s clear the metrics continue to creep in concerning directions,” the report says. “Consumers are financing more dollars on average, putting down less money, and taking on longer loans with a higher monthly payment.”

Repossessions have also steadily increased by 300,000 or more each year since 2021, the report says. It is expected to breach the $3 million threshold for the first time since the global financial crisis in 2009. 

Fitch Ratings found 6.74% subprime auto borrowers were at least 60 days past due on their loans in December, a new record, the report says. 

“As more consumers downgrade coverage, increase deductibles, or forego insurance entirely, several dynamics begin to emerge,” the report says. 

Liability claims involving uninsured or underinsured motorists become more significant, the report says. It adds that for those who remain insured, higher deductibles and affordability sensitivity influence whether lower-severity losses are filed at all. 

“In some cases, affordability pressures may also encourage opportunistic claim behavior or cost inflation intended to offset out-of-pocket expenses, further complicating claims resolution and contributing to upward pressure on overall system costs,” the report says.

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Photo courtesy of alexsl/iStock

Graphs courtesy of CCC