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Car insurance prices fell 5.0% over the 12 months ending in September, according to the Bureau of Labor Statistics. That is a rare drop after years of increases, and it gives drivers a reason to look at their renewal before it arrives.
What the Latest Inflation Report Shows
How much did car insurance prices fall?
The BLS said on October 14 that its motor vehicle insurance index was down 5.0% from September 2025. Over the same period, prices for all items rose 3.7%. After seasonal adjustment, the insurance index edged up 0.1% in September. It had fallen in July and August.
Why do repair costs matter?
Repair costs went the other way. The BLS says motor vehicle maintenance and repair rose 5.8% over the year. Insurers pay for those repairs, so the drop in car insurance prices may not last. The report does not say what happens next.
Does this change overall inflation?
A little. Car insurance has a relative importance of 2.531 in the index, so it makes up roughly 2.5% of the basket. A 5.0% drop there pulls the headline figure down slightly. Prices for all items still rose 3.7%.
Does a falling index mean your bill is lower?
Maybe not. A national index can fall while one driver’s renewal climbs. State, driving record, vehicle, and insurer all change the number.
How high are car insurance prices compared with a few years ago?
Context helps. The National Association of Insurance Commissioners (NAIC) put 2024 average expenditures at $1,431.63, up 36.64% since 2020. A single down year won’t erase that.
How to Use the Dip Before Renewal
What should you do first?
Triple-I, the insurance industry’s research group, advises getting at least three quotes by phone or online. It also says not to choose on price alone, so check each insurer’s financial strength.
Can a higher deductible lower the bill?
Triple-I says raising a deductible from $200 to $500 could cut collision and comprehensive costs by 15% to 30%. A $1,000 deductible can save 40% or more. Make sure you could pay that amount after a claim.
Which other changes can help?
Triple-I also points to bundling home and auto, and to dropping collision on an older car once it is worth less than 10 times the premium. Ask about low-mileage and group discounts too.
Editor’s Take
A lower index is welcome news. It tells you little about your own renewal, though, so treat it as a nudge to compare quotes.
Repair bills are up 5.8%, which makes waiting for a bigger cut a gamble. Check your renewal date, collect three quotes, and ask each insurer about discounts.
