Vehicle Insurance Soars
Inflation in the segment adds to laundry list of cost increases in automotive.

As insurance costs increased, vehicle maintenance and repair costs rose 7%.
IMAGE: Pexels/Mikhail Nilov
Car insurance premiums are rising more than many other consumer costs, according to a recent Consumer Price Index report, adding to car buyers’ already heavy purchase burden.
The U.S. Bureau of Labor Statistics reported that motor vehicle insurance jumped 20.3% last year, far outpacing other segments’ increases.
Meanwhile, vehicle maintenance and repair costs rose 7%.
The bureau didn’t include analysis on the factors in the increases, but they parallel the surge over the past three years since the pandemic’s onset in vehicle prices and car accidents, along with rising vehicle theft.
Inflation brought on by the pandemic has left consumers with much higher vehicle purchase prices already, though those have started to come down and incentives have returned. At the same time, interest rates soared last year as the Federal Reserve has worked to cool inflation.
Still, new-vehicle affordability improved in November to its best point in two years as consumer incomes and vehicle incentives grew, Cox Automotive said. And the Fed has stopped raising rates as it waits to see if inflation falls to its 2% target.
Originally posted on Auto Dealer Today
More F&I

Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
Humble and Hungry: 12 Rules for an F&I Life
Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.
Read More →
Focus on the Opening
F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.
Read More →