Are You Shopping for Auto Insurance in 2026? You're Not Alone!
Thinking about buying car insurance this year or wondering if it's time to switch from your current policy? You're in good company. More drivers than ever are comparing quotes, checking their coverage, and making sure they're protected without overpaying.
Here's why so many people are shopping around right now—and what you should know before you decide on your next policy.
Why More Drivers Are Looking for Better Auto Insurance Deals in 2026
Car insurance rates have gone up a lot since 2023, so people aren't just auto-renewing anymore—they're shopping to find better value.
- Repair Costs Keep Climbing Today's cars are packed with high-tech stuff: sensors, cameras, computers, and advanced safety features. Even a small fender-bender or hitting a deer can cost thousands more to fix than it used to.
- Older Cars Are Staying on the Road Longer With fewer people buying brand-new vehicles, many are keeping their older cars running. Parts for these cars get harder (and pricier) to find over time, which means higher repair bills—and higher insurance claims. Insurers pass some of those costs on through premiums.
The good news? After big jumps in recent years, 2026 looks more stable. National averages for full coverage are around $2,100–$2,500 per year, and in Minnesota, full coverage often falls in the $1,500–$2,600 range (though it varies a ton by your age, driving record, car type, and ZIP code—like in the busy Twin Cities Metro area versus the more rural areas of Minnesota). Some spots see small increases, but the wild spikes are slowing down.
Why the Cheapest Quote Isn't Always the Best Deal
Quotes can differ by hundreds of dollars—but the lowest price doesn't always mean the best protection.
A super-cheap policy might cut corners by:
- Offering less coverage overall
- Having low liability limits (which protect you if you cause an accident)
- Skipping important extras you might need
Some insurers pack a lot into their standard policy for a fair price, while others keep quotes low by starting with bare minimums. Always look beyond the dollar amount to see what you're actually getting.
Key Things to Compare (Besides Price)
- What the Policy Actually Covers: Check the types of coverage, limits, and what's left out. A low premium could mean less protection when you need it most.
- How the Company Handles Claims & Customer Service: Read reviews and ratings. A great insurer pays claims fairly and quickly. Look for ones with local agents (helpful in places like Minnesota for personalized help) instead of just phone or app support.
- Financial Strength: Make sure the company is stable and can pay out big claims if needed. Check ratings from places like A.M. Best (look for A or higher).
Important Coverages Many People Overlook
Don't get caught with gaps—here are extras worth considering:
- Uninsured/Underinsured Motorist (UM/UIM) — Covers you if an uninsured or low-insurance driver hits you (common in some areas).
- Gap Insurance — Pays the difference if your car is totaled but you still owe more on your loan/lease than it's worth—great for newer or financed vehicles.
- OEM Parts Coverage — Makes sure repairs use original factory parts (not cheaper aftermarket ones), especially key for newer cars.
- Rideshare/Delivery Coverage — If you drive for Uber, Lyft, DoorDash, etc., your regular policy might not cover you while the app is on. Add this to stay protected.
How to Pick the Right Liability Limits and Deductibles
- Liability Limits: These pay if you cause injury or damage to others. State minimums are cheap but often too low for serious accidents—you could end up paying out-of-pocket for the rest. Consider higher limits (like 250/500/250, 500CSL, or more) for real peace of mind and usually only adds a few extra dollars to your monthly premium.
- Deductibles: This is what you pay before insurance kicks in for your car's damage (collision/comprehensive).
- Higher deductible = lower monthly premium (but more out-of-pocket if you have a claim)
- Lower deductible = higher premium (but less to pay upfront) Pick one you can comfortably afford if something happens.
When to Review and Update Your Policy
It's smart to check your coverage when:
- You buy or lease a new vehicle
- You add/remove a driver (teen, spouse, etc.)
- Your policy is up for renewal each year
- You add other insurance (like home) — bundling often saves money
Wrapping It Up
With more drivers shopping for auto insurance in 2026, taking a little time to understand your options can save you money and give you better protection. Price is important, but knowing exactly what your policy covers is even more crucial.
If you're in Minnesota and feeling overwhelmed, reach out! As an independent insurance agency, we can compare quotes from multiple companies, explain everything in plain English, and help find the right fit for your needs—no pressure, just helpful guidance.