2026 MARKET TRENDS

Personal Auto Insurance

Key Takeaways

Rates are stabilizing after several years of corrective adjustments, although elevated repair and medical costs continue to keep the market firm
Repair costs remain high, driven by advanced driver-assistance system (ADAS) technology, electric vehicles (EVs) and luxury-brand repair protocols
Underwriting discipline remains tight, with increased scrutiny on youthful drivers, performance vehicles, EVs and complex multi-vehicle households
Bundled accounts remain strongly preferred, with improved pricing for households consolidating home, auto and umbrella with one carrier
Excess and surplus (E&S) placement is expanding for exotic vehicles, collector cars, prior losses, multi-state garaging and unique usage patterns, often requiring higher deductibles or mileage restrictions

Technology-driven repair complexity, elevated parts and labor costs and longer repair cycle times continue to shape underwriting decisions and claim outcomes.

Market Conditions

Personal auto trends show gradual stabilization heading into 2026 as carriers regain rate adequacy. Pricing pressure has eased compared to prior years, yet severity inflation keeps the environment firm. Technology-driven repair complexity, elevated parts and labor costs and longer repair cycle times continue to shape underwriting decisions and claim outcomes.

Carriers are applying stricter eligibility criteria, particularly for EVs, ADAS-equipped vehicles and high-performance models. Households with youthful drivers or large, high-end fleets face heightened documentation requirements and, in some cases, higher deductibles. Carriers continue to prioritize bundled accounts, offering stronger pricing and capacity to customers placing home, auto and umbrella together.

Alternative placement activity remains elevated. E&S programs are increasingly used for exotic vehicles, collector models, multi-state garaging arrangements and prior loss issues. These solutions commonly involve higher deductibles, usage restrictions or verification of garaging conditions.

Claims Trends

Claim severity remains the primary pressure point across regions. Higher parts and labor costs, advanced driver-assistance system (ADAS) components, electric vehicle (EV) repair requirements and extended repair times continue to drive rising loss amounts. A growing share of physical damage claims is being declared total losses, particularly for technology-heavy vehicles where repair costs quickly exceed vehicle values.

Weather-related events continue to drive large spikes in comprehensive losses, especially in catastrophe-prone regions. In dense urban centers, distracted driving, pedestrian incidents and congestion contribute to higher bodily injury severity. Attorney involvement and medical cost inflation further increase average bodily injury and uninsured/underinsured motorist (UM/UIM) claim values. Hail-exposed states are experiencing elevated severity and more frequent large claims, contributing to sustained upward pressure on rates and renewal outcomes.

Geographic & Regional Differences

Rate Outlook

Rates are expected to remain elevated in 2026, but increases should be more moderate than the significant rate movement seen in recent years. Most forecasts indicate low single-digit increases nationally. Customers with newer, luxury, electric vehicles (EVs) or advanced driver-assistance system (ADAS)–equipped vehicles may see results toward the higher end of that range due to higher severity trends. Total-loss frequency and repair inflation remain key pressures on rate adequacy. Telematics adoption remains low despite meaningful discounts available.

Impacts & Customer Considerations

Even as market conditions show signs of stabilizing, the personal auto market remains firm — especially for luxury, EV and technology-heavy vehicles. Customers can take proactive steps to strengthen their coverage position, reduce exposure to severity-driven pressures and support more favorable renewal outcomes.

Review carriers that specialize in luxury, EV and performance vehicles, as these insurers offer broader protection and more tailored coverage options

Align coverage with vehicle use and value, including agreed-value options that help protect against depreciation and total-loss exposure

Consider higher liability limits and coordinate auto with a high-limit umbrella program to help protect against growing bodily injury severity

Strengthen UM/UIM protection, especially in regions with elevated uninsured motorist rates

Prioritize loss prevention through enhanced security, appropriate storage and available telematics solutions for specific drivers

Consolidating home, auto and umbrella with one carrier can improve pricing consistency and strengthen overall program design.

Download this report

Go to Commercial Insurance Report

Go to Employee Benefits Report

Ready to find your solutions?

Let's chat

Brown & Brown, Inc. and all its affiliates, do not provide legal, regulatory, tax guidance and/or advice. If legal advice, counsel or representation is needed, the services of a legal professional should be sought. The information in this document is intended to provide a general overview of the topics and services contained herein. Brown & Brown, Inc. and all its affiliates make no representation or warranty as to the accuracy or completeness of the document and undertakes no obligation to update or revise the document based upon new information or future changes.