How to Money · Friday, September 4, 2026
Auto insurance premiums have dropped by 4.5% year-over-year, marking the fastest decline since 2020. This shift is attributed to increased competition among insurers and a decrease in claims, creating a buyer's market.
“Auto insurance rates, Joel, because they are dropping. There is a journal article and they talked about how premiums are down four and a half percent year over year. This is the fastest decline that we've seen since 2020.”
“It's finally, it's good to see something give on the prices are rising front. So yes, I celebrate, especially given what people have dealt with.”
“So we happen to be entering into a softer market in part because there's more competition, right? So insurers are having to compete on prices. There are also fewer claims being made. Evidently, those are the two things that are driving the biggest drops in premiums.”