Upstream Pressure
Lagging Indicator

Motor Vehicle Insurance CPI

Year-over-year change in auto insurance premiums

Historically follows CPI Inflation Rate (All Items) by 3 quarters — no active signal. CPI Inflation Rate (All Items) · View projections

What is the current Motor Vehicle Insurance CPI?

AUTO INSURANCE INFLATION
6.13% ↑ Worsening
year-over-year increase in auto insurance costs
One year ago
5.12% ↑ Worsening
up 1.0 points since May 2025

Motor vehicle insurance prices rose 6.1% year-over-year in May 2026, according to BLS CPI data (series CUSR0000SETD). While well below the 19.8% peak reached in June 2023, auto insurance inflation continues to outpace overall consumer prices. Source: BLS Consumer Price Index.

Auto insurance inflation is running at 6.1% year-over-year. Still well above the overall CPI rate and several times the pre-pandemic norm.

Before the pandemic, auto insurance inflation typically ran between 1 and 3 percent a year. Predictable. Slow. A routine feature of driving in America.

BLS data shows it at 6.1% in May 2026. The series reached its all-time high of 14.2% in January 2023; current 6.1% has not exceeded that peak, while auto insurance inflation is still running at several times the pre-pandemic norm. Cumulative auto insurance prices remain far above 2020 levels.

The drivers are structural. Vehicles are more expensive to repair because they contain more sensors and electronics. Medical costs for injury claims continue climbing. Litigation and claim severity are both elevated. None of these reverse easily. The rate has cooled from its shock level, but the underlying cost base has not.

For households, insurance is required to drive legally. That makes it one of the hardest line items to trim when budgets tighten. The Repo Line shows auto loan serious delinquency continuing to climb. Households are keeping the car running, borrowing against the wire, and then losing it. The insurance surcharge is part of what pushes them there.

Source: BLS · Latest: 2026-05

Explore Further

How has Motor Vehicle Insurance CPI changed over time?

CSV Chart Card
Auto insurance remains a major rising cost
Motor vehicle insurance CPI, year-over-year percentage change
Motor Vehicle Insurance CPI
Historical data
Monthly · BLS
Period Value YoY Change
May 2026 6.13% +1.0 pts
Apr 2026 5.15% −0.4 pts
Mar 2026 6.05% +1.2 pts
Feb 2026 5.62% −0.2 pts
Jan 2026 4.95% −1.0 pts
Dec 2025 5.38% −0.8 pts
Nov 2025 6.94% +1.2 pts
Sep 2025 7.68% +2.8 pts
Aug 2025 8.5% +4.4 pts
Jul 2025 6.54% +1.9 pts
Jun 2025 5.15% −0.9 pts
May 2025 5.12% −2.1 pts

Frequently Asked Questions

How much has auto insurance gone up?

Motor vehicle insurance prices rose 6.1% year-over-year in May 2026 (BLS series CUSR0000SETD). From the 19.8% peak in June 2023, the rate has declined but remains well above the long-run average.

Why is auto insurance so expensive?

Three factors drive elevated auto insurance costs: higher vehicle repair costs (parts inflation + labor shortages), increased claim severity (more expensive vehicles, advanced sensors), and higher reinsurance costs after years of catastrophic weather losses.

How does auto insurance inflation connect to the American Distress Index?

Auto insurance CPI is not an input to the American Distress Index. American Default Research tracks it as context: it illustrates the gap between headline CPI and the costs households actually face.

Ross Kilburn
Written by

Ross Kilburn, Founder

American Default Research · Seattle, Washington

Two decades working directly with financially distressed American households — from property preservation in 2003, to negotiating over 1,000 short sales during the Great Recession, to foreclosure defense marketing today. Author, The Ark Law Group Complete Guide to Short Sales (Auroch Press, 2013). Twice named to Puget Sound Business Journal Fast 50 for Ark Law Group. B.A., University of California, Berkeley, 1992. Founded American Default Research in 2026 to fill a gap in public data that had been empty since 2013.

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Why does Motor Vehicle Insurance CPI matter?

Motor Vehicle Insurance CPI is one of 88 live indicators tracked by American Default Research. The methodology page explains sources, update cadence, and how the index uses its published inputs.
View methodology →
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