Insurance Rates in 2026: What's Going Up and What's Going Down

## The Big Picture on Insurance Rates in 2026 Insurance costs don't move in a single direction. While some categories continue climbing, others have stabilized or even dipped. Understanding which way rates are trending in each category can help you time your shopping, adjust your coverage, and avoid overpaying. Here's where things stand as we move through 2026. ## Home Insurance: Still Climbing Homeowners insurance is the most painful category right now. Average premiums have increased 12-15% over the past year, driven by two relentless forces: climate-related catastrophe losses and rising rebuilding costs. Insurers paid out record claims in 2025 due to hurricanes, wildfires, severe convective storms, and flooding events. Those losses get passed directly to policyholders through higher premiums. In states like Florida, Louisiana, Texas, and California, increases have been even steeper — some homeowners have seen 25-40% jumps. Rebuilding costs remain elevated too. Construction labor shortages, higher material prices, and updated building codes all mean it costs more to repair or replace a damaged home than it did three years ago. Insurers have adjusted dwelling coverage limits upward, which increases premiums even when the rate per dollar of coverage stays flat. **What you can do**: Shop your policy aggressively. Get quotes from at least three carriers. Raise your deductible to $2,500 or even $5,000 if you have the savings to cover it — this can cut premiums by 15-25%. Bundle with auto insurance for multi-policy discounts. And invest in mitigation: impact-resistant roofing, updated electrical systems, and storm shutters can qualify you for meaningful discounts in many states. ## Auto Insurance: Finally Stabilizing After two years of steep increases, auto insurance rates are showing signs of leveling off. The average premium is still high — up about 3-5% year-over-year compared to 15-20% increases in 2024 — but the pace of increase has slowed dramatically. The factors that drove the spike are easing. Used car prices have normalized after the post-pandemic surge. Supply chain issues that inflated repair parts costs have largely resolved. And insurers, having raised rates significantly over the past two years, are now closer to pricing that matches their actual loss experience. That said, certain drivers are still seeing above-average increases. Owners of electric vehicles face higher premiums due to expensive battery and sensor repairs. Drivers in urban areas with high theft rates are also paying more. And anyone with a recent at-fault accident or traffic violation will see their rates remain elevated for 3-5 years. **What you can do**: If you haven't shopped your auto insurance in the past 12 months, now is a good time. Rate stabilization means carriers are competing for new business. Get quotes from both traditional insurers and newer entrants like Lemonade, Root, and Jerry. Consider usage-based insurance if you drive fewer than 10,000 miles per year — programs like Progressive Snapshot and Allstate Drivewise can save low-mileage drivers 20-30%. ## Health Insurance: Mixed Signals Health insurance trends in 2026 depend heavily on how you get your coverage. Employer-sponsored plans are seeing modest premium increases of 5-7%, roughly in line with medical cost inflation. Employers are absorbing some of the increase, but many are also shifting costs to employees through higher deductibles and larger premium contributions. On the ACA Marketplace, the picture is more nuanced. Enhanced premium subsidies that were extended through 2025 are set to expire, which could significantly increase costs for millions of marketplace enrollees unless Congress acts to extend them again. Without the enhanced subsidies, a 40-year-old earning $50,000 could see their monthly premium jump by $100-$200 for a Silver plan. Medicare Advantage plans continue to proliferate, with insurers competing aggressively for enrollees by offering supplemental benefits like dental, vision, hearing, and even grocery allowances. However, CMS is tightening Star Ratings and risk-adjustment rules, which may reduce the richness of some plan benefits in coming years. **What you can do**: During open enrollment, compare plans based on total expected cost — not just the premium. A higher-premium plan with a lower deductible often costs less overall if you use healthcare regularly. If you're on a Marketplace plan, check whether subsidy changes affect your specific situation and explore whether a different metal tier (Bronze, Silver, Gold) becomes a better value. ## Life Insurance: Holding Steady Life insurance is one of the few categories where rates have remained remarkably stable. Term life premiums have barely moved, and some carriers have actually reduced rates for healthy applicants as mortality data continues to improve. If you've been putting off buying life insurance, there's no rate-driven urgency — but there's also no reason to wait, since premiums increase with age regardless of market trends. **What you can do**: Lock in a term policy while you're healthy. Rates won't get cheaper as you age, and a health change can make coverage dramatically more expensive or even unavailable. ## The Bottom Line The insurance market in 2026 is a mixed bag. Home insurance remains the biggest pain point for most consumers, with no relief in sight for high-risk regions. Auto insurance is finally cooling off after brutal increases. Health insurance depends on your coverage source and what happens with federal subsidies. And life insurance remains a relative bargain. The universal advice across all categories: shop regularly, at least once a year. Loyalty to a single insurer rarely pays off in the insurance market. Carriers price to acquire new customers, and the best rate is almost always a new-customer rate.