Collision repair shops navigating insurer reimbursement pressure and rising parts costs now have new federal data to weigh against separate industry projections showing insurance rates climbing in most states. The two data sets, released within a week of each other this month, measure different things but both bear directly on the cost dynamics shops face when negotiating repair estimates with insurers.
National insurance costs ease as parts prices climb
The motor vehicle insurance index within the U.S. Consumer Price Index declined 0.3% in July after falling 2.0% in June, according to the Bureau of Labor Statistics' July CPI report, released Aug. 12. The index for used cars and trucks rose 0.4% over the same period, the BLS reported. The overall Consumer Price Index rose 3.4% over the 12 months ending in July, and core CPI, which excludes food and energy, rose 2.5% over the same period, according to the BLS.
Cox Automotive's Aug. 17 Auto Market Weekly Summary, written by chief economist Jeremy Robb, characterized the July decline as the sixth monthly drop in the motor vehicle insurance index in the past seven months. The same report added that new-vehicle prices rose 0.1% for the month on a seasonally adjusted basis, while motor vehicle parts and equipment rose 0.6%. Separately, the report cited Producer Price Index data showing automotive parts retailing prices increased 6.6% month over month in July, compared with a 0.2% increase in overall services prices for producers that month.
State-level rate filings show a different trend
The national insurance-cost trend contrasts with state-level rate movement reported separately by Insurify, an online insurance marketplace. The national average annual cost of full-coverage car insurance reached $2,237 in the first half of 2026, up 1% since the end of 2025, according to Insurify's 2026 Mid-Year Auto Report, updated Aug. 11.
Twenty-seven states saw rates increase during that period, reversing a 6% national decline recorded in 2025, the report found. Insurify projects that number will grow to 32 states by the end of the year, with the national average reaching $2,242.
Five states are on track to finish 2026 with rates up 6% or more year over year, according to the report: Connecticut, at 15%, followed by Kentucky and West Virginia, each at 8%, and Nevada and Illinois, each at 6%. Insurify's report also cited BLS data showing that national auto maintenance and repair costs have risen 45% over the past five years, more than triple the 14% increase recorded in the preceding five-year period.
Divergent measures, different methods
The two data sets are not directly comparable. The BLS index tracks price changes for a fixed basket of goods and services on a national level. Insurify's figures are drawn from more than 250 million auto insurance quotes in its own database, covering drivers ages 20 to 70 with clean driving records and average or better credit, and use two-year rolling median premiums, according to the report's methodology section.
Insurify tied part of the state-level increase to repair costs. "We expect most states to see rates rise this year, and drivers should plan for that," said Matt Brannon, Insurify senior economic analyst, in a press release distributed via PR Newswire. "After rates fell in 2025, 2026 looks to be a year of normalization. Inflation, more expensive vehicle technology, and rising claims costs are often the types of factors underlying rate increases."
Related industry data
The new figures follow a period of insurer rate cuts in several states after years of double-digit increases, a trend covered in a prior report on insurers reducing rates in California, Florida and Louisiana. A separate survey found that rising insurance costs are prompting some drivers to defer repairs or reduce coverage, according to an earlier report on driver behavior amid insurance cost pressure.
Cox Automotive's mid-year economic review previously found that the broader transportation services category, which includes vehicle maintenance, repair and insurance, accounted for a larger share of overall U.S. inflation over the past five years than new and used vehicle prices, parts and equipment combined, according to an earlier analysis of Cox Automotive's findings.
