By Evan Kowalski · Editor
Published
Answer in brief
Used-car values, parts, labour, medical costs and litigation all rose faster than insurers' rates between 2021 and 2023; insurers then filed catch-up increases through 2025. The cycle has slowed in most states but prices have not returned to 2020 levels.
Drivers who changed nothing saw premiums rise 30–50% over four years. Here is the sequence.
2021–2022: costs outran rates
Supply-chain disruptions pushed used-vehicle values and parts prices up sharply. Repair labour shortages lengthened repair times and rental costs. Driving returned to pre-2020 levels with more severe crashes. Insurers' loss ratios deteriorated faster than they could file increases.
2023–2024: the catch-up
Insurers filed large increases—double digits in many states—often more than once a year. Some reduced advertising and tightened underwriting in the worst-performing states. This is when most drivers noticed.
2025 onward
Increases moderated as rates caught up with costs, and competition for good risks returned in many markets. Base rates did not fall. For drivers, the practical consequence is that the insurer that was cheapest in 2021 is often not cheapest now—see when to switch.
Guides referenced in this post
Guide
Why Car Insurance Went Up With No Claims or Tickets
The reasons a premium rises when your record is clean: base-rate increases, territory re-rating, lost discounts, age-band changes, credit shifts and vehicle symbol updates.
Guide
When to Switch Car Insurance Companies
How to decide whether to switch insurers after a rate increase, when the best moments are, how to avoid a lapse, and what loyalty is actually worth.