Auto Insurance

New York State has issued new guidance requiring auto insurers to factor anticipated savings from recent reforms into their rate filings, part of a push to reduce premiums and curb fraud and excessive litigation.

Zurich Australia is teaming with Mercedes-Benz Financial Services to provide insurance for the carmaker's passenger and commercial vehicles in Australia, including combustion, electric and hybrid models.

US auto insurance premiums are projected to average roughly $2,158 to $2,256 annually in 2026, according to Insurify and The Zebra, as the market stabilizes after historic post-pandemic volatility. A 25% tariff on imported autos and parts is emerging as a major new cost driver, raising repair costs and claim severities, while insurers increasingly shift toward risk-based pricing that widens the gap between standard and high-risk drivers.

Progressive has surpassed State Farm to become the largest auto insurer in the United States for the first time since World War II, marking a historic shift in the competitive landscape of the US personal auto insurance market. The change reflects Progressive's aggressive use of telematics and data-driven, risk-based pricing, which has helped it capture market share during a period of significant premium volatility and shifting consumer shopping behavior.

Progressive has surpassed State Farm to become the largest auto insurer in the United States, according to S&P Global Market Intelligence, with nearly 27 million personal auto policies in force. The shift comes as the US property-casualty industry posts a Q1 underwriting gain with net income doubling, though slowing premium growth and persistent litigation and catastrophe risks signal a market transitioning from a hard cycle toward softer conditions.

US auto insurance premiums are stabilizing in 2026 after years of steep increases, with average annual full-coverage premiums projected between $2,158 and $2,256, according to industry analysts. However, drivers should not expect lower premiums despite recent gas price movements, as repair costs, tariffs on imported auto parts, severe weather, and state regulatory changes continue to drive pricing — with high-risk drivers facing the sharpest increases.

AI-powered insurer Lemonade has expanded its Autonomous Car insurance product to Colorado, becoming the fourth state to offer a 50% per-mile discount for Tesla owners on every mile driven using Full Self-Driving (Supervised) technology. Launched via a technical collaboration with Tesla that gives Lemonade access to vehicle telemetry data, the product represents an early test of pricing insurance based on how autonomous software — rather than human drivers — handles the road.

Progressive has moved into the top spot for US private passenger auto liability insurance, overtaking long-time leader State Farm, according to AM Best's latest rankings released in June. Progressive's total US auto direct premiums written rose 11.8% — outpacing both the industry and its competitors — reflecting the company's data-driven pricing strategy and aggressive growth during a period of significant auto insurance market repricing.

Insurtech Lemonade has launched insurance for Tesla Full Self-Driving (FSD) in Colorado, leveraging direct access to vehicle and driving data to price autonomous-vehicle coverage — a development that signals how original equipment manufacturer (OEM) data access is reshaping auto insurance. The move comes as surveys show 73% of American drivers remain too afraid to ride in a driverless car, highlighting the gap between technology adoption and consumer trust.

Insurtech Lemonade has launched Tesla Full Self-Driving (FSD) insurance in Colorado, marking a significant step in how automaker data is reshaping auto insurance pricing for autonomous and semi-autonomous vehicles. The move comes as the industry grapples with how to underwrite increasingly automated vehicles, even as surveys show 73% of American drivers remain too afraid to ride in a driverless car.

New York lawmakers have agreed to Governor Kathy Hochul's auto insurance reforms as part of the new state budget, aiming to address rising premiums and affordability concerns. The reforms have drawn measured responses from major carriers, with State Farm's CEO signaling the industry will want to see proof that the changes deliver real benefits, highlighting the ongoing tension between consumer affordability and insurer profitability.

New York's FY27 budget, signed by Governor Kathy Hochul in late May 2026, includes the most sweeping auto insurance reforms the state has seen in decades, targeting fraud, staged accidents, and runaway litigation in a market where drivers pay an average of about $4,000 annually. While insurers welcomed the reforms, State Farm CEO Jon Farney said in early June that the company wants 'some proof' the changes work before expanding aggressively in the state.

US auto insurance premiums are projected to average $2,256 annually in 2026, according to The Zebra, with rate increases expected in 19 states driven by tariffs on imported auto parts, rising repair costs, severe weather, and state-level regulatory changes. Insurify offers a more moderate forecast of a 1% national increase to $2,158, as the market stabilizes after historic post-pandemic volatility and shifts toward granular, risk-based pricing.

Admiral, one of the UK's largest motor insurers, has completed its acquisition of Flock, an AI-native commercial fleet telematics and insurance provider. The deal brings real-time, behaviour-based fleet underwriting capabilities directly in-house, reflecting a broader industry shift toward usage-based insurance powered by telematics and artificial intelligence.

US auto insurance premiums are projected to average between $2,158 and $2,256 annually in 2026 according to leading industry analysts, with rate increases expected across many states driven by rising vehicle repair costs, tariffs on imported auto parts, severe weather exposure, and state-level regulatory changes. The market is stabilizing after historic post-pandemic volatility, but high-risk drivers continue to face the sharpest premium increases.

US auto insurance premiums are stabilizing in 2026 after the historic volatility of recent years, with Insurify forecasting a modest 1% national increase to about $2,158 for full coverage and The Zebra projecting an average of $2,256. However, tariffs on imported auto parts, rising repair costs, and state-level regulatory changes continue to create upward pressure, with high-risk drivers facing the steepest increases as insurers shift to granular risk-based pricing.

Auto insurance premiums in the United States are projected to average $2,256 annually in 2026, according to The Zebra's State of Insurance report, with rate increases expected in 19 states. Tariffs on imported auto parts, rising vehicle repair costs, severe weather exposure, and state-level regulatory changes are the key drivers. Insurify offers a more moderate forecast of a 1% national increase to $2,158, reflecting a market stabilizing after historic post-pandemic volatility.

The Michigan Supreme Court has ruled that auto insurer Progressive properly rescinded a policy after a driver misstated key details about vehicle garaging location and household members. The decision reinforces insurers' ability to void coverage when applicants provide materially false information, a significant precedent for the auto insurance industry's underwriting and fraud-prevention practices.

After six consecutive quarters of falling prices, UK motor insurance is turning higher, with researchers warning premiums will climb through 2026. Consumer Intelligence data show average quoted car insurance premiums rose 4.5% in the first quarter, the first quarterly increase since early 2024, while Oxbow Partners and EY forecast worsening profitability as repair-cost inflation and supply-chain disruption from the Iran war push up claims. EY projects the UK motor sector's net combined ratio will deteriorate from 101% in 2025 toward 111% in 2026, meaning insurers expect to pay out well above what they collect in premiums.

Ontario is implementing significant auto insurance reforms effective July 1, 2026, making most accident benefits optional in an effort to create more personalized and competitive coverage and lower premiums for drivers who opt out of certain protections. Supporters argue the changes give consumers choice and could reduce costs, while critics warn the reforms risk leaving drivers dangerously underinsured. The overhaul is among the most consequential changes to Canada's largest auto insurance market in years.

Kemper Corp shares are down 43.5% year-to-date in 2026, among the worst performers in US insurance, after first-quarter results were hurt by higher claim severity and frequency in California that pushed its combined ratio to 106.7% — meaning the insurer paid out more than it collected in premiums. The Chicago-based auto-focused insurer completed the sale of its retail P&C distribution business, Newins Insurance Agency, to Confie in April and appointed former Horace Mann executive Stephen McAnena as president and CEO.

USAA announced on June 8, 2026 that it will distribute a $500 million dividend to approximately 830,000 Florida members who held auto insurance policies between 2023 and 2025, with payments of an average $760 beginning June 15. Combined with rate reductions averaging 14% from two recent Florida filings, the insurer will have returned nearly $1 billion to eligible Florida members between December 2025 and July 2026. USAA's CEO directly credited Florida's landmark 2022 civil litigation and tort reforms as the enabling factor.

Progressive Corporation has overtaken State Farm Mutual Automobile Insurance Co. as the largest private passenger auto insurer in the United States by direct premiums written, ending State Farm's 82-year run as the segment's undisputed leader. The milestone, confirmed in S&P Global Market Intelligence's Q1 2026 analysis, reflects Progressive's aggressive technology-driven growth strategy, disciplined pricing, and record underwriting margins, contrasted with State Farm's well-publicised challenges in recent years.

Auto insurance premiums in the United States are projected to average $2,256 annually in 2026, according to The Zebra's State of Insurance report, with rate increases expected in 19 states primarily driven by rising vehicle repair costs, tariffs on imported auto parts, severe weather, and state-level regulatory changes. Insurify forecasts a more moderate 1% national increase to $2,158, highlighting diverging projections among analysts as the market stabilizes after historic post-pandemic volatility.