Auto & Home Insurance Trends to Watch in 2026: What Rural Homeowners & Drivers Should Know

Over the last several years, we’ve all felt the effects of a hard insurance market. From steep premium hikes to stricter underwriting requirements resulting in more non-renewals and cancellations, these changes have especially impacted rural areas like Wallowa County, Oregon. 

As we look toward 2026, it’s helpful to understand where the market is headed, why insurance trends including premiums and requirements are shifting, and how you can prepare.

Market Outlook: Stabilization, But Not a Reset

The COVID-19 pandemic rocked the entire world, and the insurance industry was no exception. Insurance companies made major adjustments that led to long-term consequences, some of which they are still recovering from, but we’re finally starting to see the market settle into a new normal.

Less Drastic Premium Increases

After a period of unusually high premium growth, the property & casualty market (which includes home and auto insurance) is expected to cool. Swiss Re anticipates an average premium increase of about 4%, compared to the nearly 10% increases seen in recent years.

Insurance Companies Monitoring Profitability

That said, we expect insurance companies to continue closely monitoring their profitability. With rising risks such as major natural disasters, theft, and weather-related losses, carriers may still need to adjust premiums to cover increasing claim costs.

What These Insurance Trends Means for You

Premiums may not surge as dramatically this upcoming year as they did in 2021-2025. However, you should still anticipate an increase at renewal. This is especially true for higher risk properties, for example, if your home is located in a remote area away from a fire station.

Why Home Insurance Rates Have Spiked and What’s Driving the Future

The Consumer Federation of America reports that, over the past three years, home insurance premiums have risen 24%, or about $648 per year, on average. These steep increases were felt almost nationwide, with 95% of zip codes experiencing significant rate hikes.

Why Home Insurance Premiums Rise

There are many factors behind an insurance premium. Some are general and others are based on your individual risk profile. At the general level, insurance companies often cite these reasons for increasing premiums across the board:

1. Natural disasters: More frequent and severe natural disasters like wildfires are becoming more costly. 

2. Cost of construction: Supply chain disruptions and labor constraints continue to make construction more expensive, thus raising the cost of repairing and rebuilding homes.

3. Reserve Strengthening: Insurance companies must keep reserves to cover long-term, large claims.

Insurance Rates Aren’t All Equal

Based on these factors, some people may see more or less premium increases in the next year. If you live in an area prone to natural disasters that also happens to be far away from resources, your premium may be higher because the company is anticipating that you are higher risk and the claim will be more expensive due to the cost of getting supplies and labor to you. It’s also possible that you won’t have as many options for your home insurance since some companies may not want to write policies at all in these high-risk areas.

Auto Insurance Predictions

Auto insurance has generally stabilized more than home insurance. However, repair costs remain inflated after COVID, which can increase insurance premiums. 

What You Can Do

Shop your insurance policy

It’s always a good idea to double check you’re getting the best rate. When you get your renewal offer, it’s worth asking your agent to compare your options. Easily getting free quotes from multiple insurance companies is one of the best perks of working with an independent agent.

Review your coverages

At least once a year, review your auto and home coverages. If you’re looking to save money, you may be able to decrease coverages depending on your needs and priorities. And, as your home’s value increases, it’s recommended that you double check you’re properly insured.

When you receive your renewal offer, take a look at the coverages. Make sure you’re not paying for anything unnecessary. You can also ask your agent to review your coverages with you.

Explore discounts for your home and auto policies

There are many ways to save a bit of money on your policy. Ask your agent about available discounts like:

• Snapshot/Telematics

• Paperless

• Good student

• Student away from home

• Low mileage 

  
  

Plan for Contingency

Have a backup plan if your insurance company non-renews or cancels your policy. Ask your agent about your options. Keep your property well-maintained to prevent cancellations for other reasons such as tree limbs overhanging your roof or chimneys not being properly cleaned.

Hillock Insurance Can Help You Find Affordable Insurance

We know that rising insurance premiums put strain on you and your family. We’re here to help you find the most comprehensive coverage for a price that fits your budget. Contact us to get started.