Following the launch of its sweeping homeowners insurance data call in March 2026, the National Association of Insurance Commissioners (NAIC) has turned its data collection focus to the personal auto insurance market. Auto insurance premiums have risen sharply across the country since 2021 -- driven by a combination of surging vehicle repair costs, increased accident frequency, supply chain disruptions that elevated total loss values, and rising medical costs from injury claims. State regulators are now collecting detailed carrier-level data to understand which factors are driving those increases and whether the rate increases being approved are consistent with actual loss experience.
What Is Driving Auto Insurance Rate Increases?
Personal auto insurance has been one of the most volatile property-casualty lines in recent years. Loss ratios -- the percentage of premium dollars paid out as claims -- deteriorated significantly for most major carriers between 2021 and 2024 as inflation drove up both parts prices and labor costs. A fender-bender that would have cost $2,500 to repair in 2019 might now cost $5,000 or more, reflecting higher parts prices, longer repair times due to technology complexity in modern vehicles, and elevated shop labor rates.
At the same time, accident frequency has increased in many states following the behavioral changes that accompanied the COVID-19 pandemic. Miles driven recovered to near pre-pandemic levels by 2022, but the composition of driving changed -- higher speeds on less-congested roads during the pandemic appear to have established new driving habits that persisted even as traffic volumes recovered. Claims severity -- the average cost per claim -- is now elevated both by inflation and by the increased complexity of modern vehicles, which rely on sensors, cameras, and advanced driver assistance systems that require calibration or replacement after even minor collisions.
What the Data Call Covers
The NAIC auto insurance data collection initiative requires carriers to submit policy-level data organized by ZIP code, covering premiums charged, policies in force, cancellations and non-renewals, loss experience by peril type, and the underwriting factors applied to individual policies. The geographic granularity is intended to reveal whether rate increases are uniform or concentrated in specific communities, and whether non-renewal patterns correlate with factors that should not be actuarially relevant to auto insurance risk.
The equity dimension is a focus of the initiative. Consumer advocates have raised concerns that auto insurance pricing practices in some markets result in lower-income and minority communities paying higher premiums than risk factors alone would justify -- a pattern sometimes attributed to the use of non-driving factors like credit scores, occupation, and education level in pricing models. NAIC members will be able to use the collected data to evaluate whether such patterns exist in their states and take regulatory action if they find evidence of unjustified disparities.
What Consumers Can Do Now
The regulatory data collection process operates on a longer timeline than individual consumers need when facing a premium increase at renewal. The most effective near-term responses to elevated auto insurance costs are actions within the policyholder's own control: shopping competing quotes annually, reviewing and adjusting deductibles and optional coverage based on current vehicle value, maintaining a clean driving record, and asking about all available discounts -- including telematics programs, low-mileage discounts, and bundling with homeowners or renters coverage.
The NAIC data initiative may ultimately lead to state regulatory actions that provide structural relief over the medium term -- but that process will take at least 12 to 24 months from data submission to any policy outcomes. In the meantime, the most reliable source of premium relief is an aggressive annual quoting process.
Use our Auto Insurance Calculator to estimate your coverage costs, and see our guides on how to lower your car insurance and car insurance after an accident for targeted cost-reduction strategies.
What to Watch For as Results Are Released
The NAIC auto insurance data call is likely to produce publicly available findings in 2026 and 2027 that will matter to consumers in several ways. If the data reveals geographic concentration of rate increases in specific communities, state regulators will have the granular evidence needed to scrutinize whether those increases are actuarially justified or whether non-risk-related factors are playing a role. Carriers that have used credit scores, occupation, or education level as rating factors in states where those uses are under review may face pressure to modify their rating algorithms based on the collected data.
For individual consumers, the most actionable near-term insight from the data call environment is this: the best protection against market-wide rate increases is an active shopping discipline. Carriers that have raised rates aggressively to rebuild underwriting margins may still have competitors who have made different business decisions about how quickly to raise prices. The difference between the highest and lowest rate in the same state for the same risk can exceed 50 percent -- which means shopping remains one of the highest-impact financial decisions available to auto insurance consumers regardless of broader market trends.
Regional Variations in the Data Call Findings
One of the most valuable aspects of the NAIC data call methodology is its geographic granularity. Rather than producing national averages that mask significant regional variation, the data call is structured to reveal differences at the state and sub-state level. This matters because the auto insurance market is not a single national market -- it is 50 separate state markets, each with its own regulatory framework, minimum coverage requirements, litigation environment, and carrier competitive landscape.
States that emerge from the analysis with the most significant divergence between actuarial costs and average premiums paid by consumers in specific communities may become the focus of targeted regulatory intervention. If the data reveals that drivers in certain ZIP codes are paying premiums substantially above what actuarial factors alone would justify, regulators in those states have the empirical basis to scrutinize carrier rating practices more closely. Conversely, states where markets appear competitively priced relative to underlying risk may become templates for regulatory approaches that other states consider adopting.
For consumers, the near-term actionable insight is the same regardless of the macro regulatory outcome: active shopping remains the most effective individual strategy for accessing competitive pricing in any state market. The NAIC data will influence market structure over years, not months. In the meantime, getting two or three competing quotes at your next renewal is available immediately and has a documented track record of producing meaningful savings for consumers who execute it consistently.
What Happens If Your Carrier Exits Your Market
One scenario the NAIC auto insurance data call is likely to illuminate is the experience of consumers in markets where one or more major carriers have reduced their footprint or exited entirely. When a major carrier exits a state market or sharply reduces new business, the remaining carriers face reduced competitive pressure and may raise prices more aggressively. Consumers who relied on that exiting carrier's pricing as the market benchmark may find that their replacement options are meaningfully more expensive, particularly in the near term before the market rebalances. The practical lesson: do not assume your current carrier is stable in your market indefinitely. Periodic shopping -- even when you are satisfied with your current carrier -- gives you visibility into what alternatives are available and at what price. If your carrier does exit or non-renew your policy, you will already know where competitive alternatives exist rather than starting the search under pressure with a coverage gap looming.