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.