Mercury General says rising repair and injury costs push auto insurance premiums higher despite clean driving records
MCY•Auto insurance costs climb as repair and injury claims rise
Mercury General published an auto insurance industry analysis pointing to rising claim severity as repair complexity and medical costs climb.
- U.S. motor vehicle maintenance and repair prices rose 6.6% in July 2026 vs. a year earlier; repair alone increased 6.2%.
- IIHS data cited average vehicle repair prices up more than 40% since 2020, raising loss costs even for low-risk drivers.
- CCC data showed calibrations in 28.3% of repairable estimates in 2025, up from 21.8% a year earlier.
- Total-loss frequency hit 23.1% of claims; bodily injury payouts rose 10.3% year over year, up 32% over four years.
