Read our full analysis for a more in-depth look at these trends.
Insurance costs hit the brakes
Insurance payment growth is cooling, but the relief consumers are seeing depends heavily on who and where they are.
October 2026
Key takeaways
- Property insurance (e.g., auto, homeowners, renters) payment growth has slowed considerably, according to Bank of America payments data. Median payments rose just 1% year-over-year (YoY) in 2026, easing further from the 6% growth seen in 2025, after a roughly 12% increase in 2024, suggesting that many consumers are getting some relief from rising insurance payments.
- However, the moderation is uneven across consumers. Bank of America payments data suggests that Gen Z continues to experience insurance payment growth of nearly 6%, while increases for other generations are closer to 1% to 2%. Payments also rose nearly 1.5% for higher-income households but edged lower for those with lower incomes.
- Lower accident rates, easing vehicle prices, and softer major-purchase growth may be reducing cost pressures, but geography remains a major dividing line. Florida metros recorded declines of roughly 7% to 8%, while California and several Northeastern metros continued to see relatively strong increases.
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