Insurance Inflation Index: Car insurance prices fall 2% in June

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Auto insurance prices fell 2.0% in June 2026, a steeper drop than May’s 1.7% and the sharpest monthly decline since at least mid-2024, according to Bureau of Labor Statistics data. Two consecutive declines of that size are a sign that the multi-year climb in rates has firmly reversed.

Prices fell 0.4% in January and 0.3% in February, were flat in March and edged up 0.1% in April before dropping sharply in May and June. After months of small, mixed moves, the size and repetition of the spring declines stand out.

The slide in auto insurance inflation is welcome news for consumers, who saw car insurance prices surge sharply through 2023 and into 2024. Monthly increases of 0.9% to 1.2% were common through mid-2024, and prices jumped 2.0% in a single month in January 2025, before the trend began to reverse.

Note: Data for October and November 2025 were not available at the time of publication, and motor vehicle insurance data for December 2025 were also unavailable.

What this means for drivers

Even with two straight months of sharp drops, drivers are still paying more than they were a few years ago. Two months of falling prices don’t undo the steep increases that came before them.

That makes it worth comparing quotes at renewal. Prices can vary widely from one carrier to the next for the same driver, so shopping around is one of the few ways to lower a bill without changing coverage.

It also helps to remember that a national average doesn’t reflect any one person’s premium. Rates depend on factors like age, driving record, the vehicle, coverage limits and location, so two drivers can see very different numbers even when overall prices are moving in the same direction. Shopping around is the best way to find the most affordable coverage for your profile.

Other insurance segments

Health insurance prices fell 0.5% in June 2026, the seventh straight monthly decline. The pace has been uneven — a 0.1% dip in May gave way to a deeper 0.5% drop in June — but the direction hasn’t changed since December 2025. It’s a clear reversal from mid-2025, when health prices were posting modest monthly gains of 0.6% in June and 0.4% in July.

Prices for tenants’ and household insurance rose 0.2% in June after a 0.5% gain in May, continuing a stretch of choppy, up-and-down months. The segment has swung between small gains and slight dips since late 2025, and it was the only one to post a gain in June.

The BLS doesn’t track homeowners or life insurance.

Nupur Gambhir

Managing Editor

 

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Nupur Gambhir is the editor-in-chief of Insure.com and a licensed life, health and disability insurance agent in New York with seven years of experience covering insurance. Her expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Balance, The Financial Gym and MSN. She holds a BA in Economics from The Ohio State University.