Buying auto insurance in 2026? Or deciding whether to renew your current policy?
You’re in good company. More drivers have been reviewing their coverage and comparing quotes in recent years. To help make the process easier, this guide explains what’s driving that trend and what to consider before moving forward.
Why Are More People Shopping for Auto Insurance in 2026?
More people have been shopping for auto insurance since 2023, largely because of rising rates across the industry.
Several factors are contributing to higher costs:
- Vehicles are more expensive to repair. Newer cars have more electronics and advanced parts, which can make repairs significantly more costly than they used to be. Even a common accident, like hitting a deer, may result in a higher repair bill because of the technology built into today’s vehicles.
- Fewer people are buying new cars. As older cars stay on the road longer, replacement parts can be harder to find. That can also drive up repair costs. As these costs rise, insurance companies are paying more for claims. Higher claim costs may lead to increases in overall premiums, which is one reason more people are reviewing their options and shopping for auto insurance.
Why Not Just Get the Cheapest Insurance Option?
When people shop for insurance, they may notice big differences in price. A lower number can be tempting, but it’s important to understand what you’re actually getting for that price.
When you compare quotes, costs can vary because:
- Each company builds its policies differently. Some include more coverages in their base policy, while others include fewer, even if the quotes look similar at first glance.
- Low liability limits or missing coverages can increase risk. A cheaper price often means less protection, which could leave you paying more out of pocket if something happens.
These differences can all affect the price you see when comparing quotes. That’s why it may be helpful to look beyond the price and review what the policy actually includes.
What to look at when comparing companies beyond prices:
- What is included in the policy. Review coverages, limits and exclusions to understand what protection you’re getting.
- Claims support and reputation. Look at how well a company handles claims and what
customers say about their experiences. Some insurers offer more personalized support or local offices, while others rely on call centers. Reviews may help show what you can expect if you need to file a claim. - Financial strength. A company’s financial rating can indicate its ability to pay claims, which may be helpful to consider when choosing who to insure with.
Coverages Many People Miss or Misunderstand
Many auto insurance coverages are commonly misunderstood, while others are often overlooked altogether. Knowing about these options may help you better understand what your policy does, and doesn’t, include.
Uninsured and Underinsured Motorist Coverage (UM/UIM)
This coverage helps protect you if you’re in an accident caused by someone who doesn’t have insurance or doesn’t have enough coverage to pay for the damage. If you’re injured and the other driver can’t cover the loss, UM/UIM coverage may help fill that gap.
Loan or Lease Gap Coverage
When you buy a new car, its value can drop as soon as you drive it off the lot. If the vehicle is totaled shortly after purchase, you may owe more on your loan or lease than the car is worth.
Gap coverage is designed to help cover the difference between what you owe and the vehicle’s value at the time of the loss.
Original Equipment Manufacturer (OEM) Parts Coverage
OEM parts coverage allows repairs using original manufacturer parts rather than aftermarket alternatives. This may be important for owners of newer vehicles who want repairs made with parts designed specifically for their car.
Transportation Network and Delivery Coverage
If you use your vehicle for rideshare or delivery services, your personal auto policy may not cover every situation. Transportation network and delivery coverages are designed to help fill the gap between personal auto insurance and coverage provided by those companies.
How to Choose Liability Limits and Deductibles
Two of the biggest decisions you’ll make when buying or renewing auto insurance are your liability limits and your deductible.
Liability Limits
Liability coverage helps pay for injuries or damage you cause to others in an accident. Your liability limits are the maximum amounts your policy will pay. Lower or state-minimum limits may reduce your cost, but they may not be enough if a serious accident occurs. If a claim exceeds your limits, the remaining amount could be your responsibility.
Deductibles
A deductible is the amount you pay out of pocket before your insurance helps cover damage to your vehicle. A higher deductible usually lowers your monthly cost, while a lower deductible
usually increases it. When choosing a deductible, it may help to consider what you could comfortably afford to pay if you had a claim.
When to Review Your Policy
There are certain times when it may be a good idea to review your auto insurance to make sure it still fits your needs, including:
- When you buy a new vehicle. Adding a car is a good time to review all coverages on your policy, not just those for the new vehicle.
- When drivers change. Adding or removing a driver is another reason to review your policy. It’s important to make sure everyone who should be listed as a driver is included.
- At renewal time. Reviewing your renewal documents each year can help you spot changes to your policy. You don’t have to start over or shop for quotes, but it may be helpful to look over your declarations page and ask questions if anything looks different.
- When you buy other insurance. Purchasing another policy, like homeowners insurance, may be a good time to ask about potential discounts or whether any changes are needed on your auto policy.
As more people shop for auto insurance in 2026, it may help to take a closer look at your coverage and options. Taking time to understand your policy, ask questions and review your choices may help you make a more confident decision.
If you’re unsure where to start, talking to an agent at Frost Insurance Agency can help you review your options and understand what your policy includes. While price matters, paying attention to coverage may help you choose a policy that better fits your needs.