Auto Insurance Rates Flatten Amid Trump Deportation Policies

The national average rate hike for auto insurance has fallen to less than 1%, the smallest increase since 2022.

Jan. 28, 2026 at 12:47pm

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According to a new report, the national average rate hike for auto insurance has fallen to just 0.67%, a significant drop from the double-digit increases seen in previous years. Experts attribute this slowdown in rate hikes to President Trump's economic agenda and immigration policies, which have helped stabilize wages, housing costs, inflation, and transportation expenses. The report also notes a decline in used car prices, which had previously driven up insurance rates.

Why it matters

The slowdown in auto insurance rate hikes is seen as a win for American consumers, who have faced rising costs across many sectors in recent years. This trend could provide some much-needed relief and affordability, especially for lower-income households that rely on personal vehicles.

The details

While some states and insurance providers are still seeing higher rate increases, the national average of 0.67% represents the smallest year-over-year rise since 2022. This is a stark contrast to the double-digit hikes of 11.57% in 2023, 17.13% in 2024, and 7.56% in 2025. Experts attribute this to President Trump's policies that have helped stabilize the economy, including lower migration levels, rising wages, declining housing costs, and falling transportation expenses.

  • The national average auto insurance rate hike was 0.67% in 2026.
  • In 2023, the average rate hike was 11.57%.
  • In 2024, the average rate hike was 17.13%.
  • In 2025, the average rate hike was 7.56%.

The players

President Donald Trump

The former U.S. president whose economic agenda and immigration policies are credited with helping to slow the rise in auto insurance rates.

Joe Biden

The former U.S. president whose policies during his term from 2020-2024 are said to have contributed to rising costs in the automotive sector, including increased insurance rates.

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The takeaway

The slowdown in auto insurance rate hikes is a positive development for American consumers, providing some much-needed relief from rising costs in recent years. This trend appears to be linked to President Trump's economic policies, which have helped stabilize wages, housing, inflation, and transportation expenses - all factors that had previously driven up insurance rates.