The cannabis industry continues to grow, but not without some problematic flash points in the first half of 2026.

For starters, the global cannabis industry is expected to reach $102.7 billion in 2026 and $428.2 billion by 2032, according to Fortune Business Insights, while support for legalizing cannabis stands at 87%.

The global cannabis insurance market is growing at a similar pace, with the industry expected to rise to $6.7 billion by 2032, at a 14% compound annual growth rate.

See last year’s 2025 cannabis business insights report to compare new growth within the industry.

“The cannabis industry has entered a more professionalized stage,” said Cimone Casson, a licensed insurance agent at Cannas Capital in Grand Rapids, Mich., in a recent research note. “Global legalization momentum continues, with countries like Germany and Australia advancing reforms, yet U.S. federal legalization remains uncertain, leaving businesses in a patchwork of compliance rules. For insurers, this means balancing risk with opportunity.”

Areas of opportunity and concern have also emerged with cannabis sector growth, with Cassone citing three key industry issues rising, as the cannabis industry “needs insurance more than ever.”

• Operational Risks Intensify: “Cultivation facilities face fire hazards, theft, crop failure, and regulatory scrutiny,”  Casson said. “Losses from indoor facility fires alone can be staggering.”
• Professionalization Pressure: “Securing insurance is now seen as a benchmark of credibility for cannabis businesses,” Casson added.
• Rising Premiums & Stricter Underwriting: “Insurers are tightening standards, making coverage harder to obtain but more valuable,” Casson stated.

With those industry needs in mind, here are the key flash points between the cannabis and insurance industries.

Cannabis rescheduling is heating up

There’s movement on marijuana rescheduling talks from Schedule I to Schedule III with the Trump administration right now

“A blueprint is currently being developed by a patient-first coalition outlining recommendations for medical cannabis,” said Matthew Myro Rothman, chief science officer at Cannalnx by EM2P2, a cannabis health services provider. “That framework is expected to be submitted to the administration ahead of a formal cannabis commission, which is anticipated to launch this summer. The goal is to complete the bulk of the rescheduling work before the fall.”

There are ongoing discussions about the rescheduling initiative, but as of now, no final change has been implemented. “For insurers, the practical reality remains the same,” said  Spencer Mio, client advisor at Acrisure in Detroit, Mich. “Cannabis is still treated as a federally illegal operation for underwriting and banking purposes, which continues to limit carrier participation and capacity despite state‑level legalization.”

Farm bill, illegal hemp, and the commercial and insurance impact

For years, hemp products have existed in a legal gray zone, becoming widely available, lightly regulated, and often misunderstood. That’s now changing quickly in Washington, D.C., and the ripple effects could hit not just consumers but also insurers, retailers, and even homeowners.

At the center of that shift lies the Agriculture Improvement Act of 2018, better known as the 2018 Farm Bill, and a new federal push to tighten the rules around hemp-derived THC products. That legislation legalized hemp nationwide, as long as it contained no more than 0.3% delta-9 THC, the primary psychoactive compound in cannabis.

Congress’s narrow definition created an unintended workaround. Cannabis manufacturers began producing compounds like Delta-8 THC (a chemically altered version of THC), THCA flower (which converts to THC when heated), and THC-infused drinks and edibles derived from hemp. Because these products technically complied with the “delta-9 only” rule, they spread quickly; often sold in gas stations, smoke shops, and online with minimal oversight.

Now, federal lawmakers are moving to close that loophole in a 2025 federal measure, separate from the pending Farm Bill, redefining hemp to include “total THC,” not just delta-9. That means all THC variants (delta-8, delta-9, THCA) are counted together, and synthetic cannabinoids are effectively banned

Insurers will have to get a firm grip on the new reality that numerous products currently sold as “legal hemp” would no longer qualify as legal under federal law starting in late 2026.

“As of now, there is no clear definition of how a potential hemp ban or closure of the Farm Bill loophole would be implemented,” Rothman noted. “These issues are expected to be addressed as part of broader federal cannabis discussions taking place this summer. Insurers should closely monitor the findings of the commission and any resulting regulatory guidance.”

State-level cannabis guidance continues to be formulated

State legislative activity on cannabis remains mixed, with some states expanding adult‑use or refining regulatory structures, while others continue to stall or reverse course. “This patchwork environment requires insurers to underwrite on a state‑by‑state basis, factoring in licensing protections, enforcement posture, and regulatory maturity,” Mio said.

Other cannabis experts say the insurance market is seeing some momentum, but also some fragmentation.

“Some states are advancing adult-use programs, while others are rejecting or stalling legislation,” said Dr. Priyanka Sharma, co-founder and co-CEO of Kazmira Therapeutics in Denver, Col.“What’s notable is that even in states where legalization fails, public support continues to rise.”

The market is also seeing states shift focus from expansion to tightening existing programs. “That’s mainly through stricter licensing, enforcement, and product standards, which adds another layer of complexity for operators and insurers,” Sharma said.

For 2026, the end result is a long-term trajectory toward expanding the cannabis insurance market. “Yet in the near term, operators and insurers must navigate a patchwork system, not a unified market,” Sharma added. One exception is that some states are implementing the new federal definition of hemp ahead of the November, 2026 deadline,” Sharma noted.

Cannabis business insurance trends and best practices

Insurance industry cannabis coverage options have expanded modestly over the past year, but cannabis insurance remains highly specialized, with these channels being the most prominent.

Cultivators: Property and crop coverage remains limited, with most policies only covering named perils rather than full crop failure.

Manufacturers and retailers: Product liability, contamination risk, and recalls remain top concerns. “That’s especially the case given recent attention on testing inconsistencies,” Mio noted.

Adult‑use vs. medical: Medical operators generally face slightly broader carrier appetite. “That’s due to tighter regulations and lower perceived loss frequency,” Mio added.

Non‑plant‑touching businesses: These policies are often easier to insure, “but exclusions tied to cannabis revenue and contracts must be reviewed carefully,” Mio said.

Audits: Insurance audits are “pushing companies toward higher operational discipline, which is ultimately a good thing,” Sharma said.

Retailers and Brands: There’s more availability in general liability and product liability, but premiums reflect the uncertainty of the regulatory environment,” Sharma noted.

Cannabis models: Policy-wise, a growing area to watch is regulated, medical-oriented cannabinoid models (e.g., compounding pharmacies or prescription-based frameworks). “This market may be viewed more favorably due to higher clinical oversight and documentation standards,” Sharma added.

Here’s how cannabis use is impacting personal insurance

The insurance industry has begun to enter the consumer side of medical cannabis, with more than a dozen personal insurance programs now offering some form of support for patients seeking reimbursement for medical cannabis purchases.

“That said, some of the more advanced models are already moving beyond theory,” Rothman said. “Platforms like CannaLnx by EM2P2 are helping connect patients, providers, insurers, and dispensaries within HIPAA-compliant frameworks, allowing certain employer-sponsored health plans to begin reimbursing medical cannabis as part of broader wellness benefits. Many of these programs are actually much more affordable than traditional health plans.”

More broadly, more than 100 insurance companies are actively evaluating how cannabis fits into their offerings. So far, early underwriting perspectives “have generally been favorable toward its therapeutic potential,” Rothman said.

Additionally, generalized cannabis personal insurance policies are an area where perception is evolving faster than policy. Here’s a capsule look.

Health insurance: Most health insurance providers still do not cover medical cannabis, largely due to federal classification. “That said, we may see incremental change if rescheduling progresses,” Sharma said. “Even with rescheduling, coverage would likely be gradual and limited, as insurers typically require FDA-approved products and established reimbursement pathways.”

Homeowners and renters insurance: Generally, cannabis products are treated like other personal property. “Yet coverage can be limited, especially if quantities exceed ‘personal use’ thresholds or violate local laws,” Sharma noted. “Coverage limitations often arise when cannabis is cultivated, stored in large quantities, or associated with business activity in the home.”

Auto insurance: Unlike alcohol, there is no universally accepted impairment threshold for cannabis, which creates additional complexity for insurers and enforcement.

“In this environment, Cannabis-related DUIs are becoming a bigger focus, but we’re not yet seeing a distinct ‘cannabis DUI insurance’ category,” Sharma said. “Instead, it’s being folded into broader impaired driving risk.”

Life insurance: Life policies are among the markets where consumers are seeing the most normalization. “Cannabis use is increasingly treated similarly to alcohol or tobacco, depending on frequency and disclosure,” Sharma added. “Disclosure remains critical; undisclosed cannabis use can still impact underwriting decisions or claims.”

Looking Forward Through the Rest of 2026

Of all the issuing changing cannabis companies right now, perhaps preparation from cannabis companies, or lack of it, is the biggest issue.

“I’ve been tracking the cannabis insurance market since California first legalized recreational use in 2016, and there’s one issue most business owners miss,” said Sam Meenasian, vice president of sales and marketing at USA Business Insurance. “In our view, standard general liability policies almost always exclude cannabis-related claims. I’ve seen dispensaries lose everything because they assumed they were covered.”

The cannabis businesses that survive in 2026 and beyond are the ones that treat insurance as infrastructure, not an afterthought. “They’ll work with carriers who actually understand the regulatory patchwork,” Meenasian noted. “Because it’s not just about having a policy, it’s about having one that pays out when you need it.”

The post Cannabis & Hemp Business Insurance in 2026: Risks, Regulation and Coverage Trends appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

International conflict can affect insurance costs in several ways. Travel insurance may become harder to use because of war exclusions and known-event rules, while fuel, shipping, and parts disruptions can also raise home and auto insurance costs over time.

Armed conflict is, first and foremost, a human tragedy. The loss of life, displacement of civilians and destruction of infrastructure is devastating with long-lasting repercussions. But as global conflicts unfold, they also create ripple effects that reach into everyday financial decisions, including how insurance works for travelers, homeowners, and drivers.

 The Iran War has underscored how quickly conditions can change.

Airspace closures across parts of the region have disrupted commercial flights, while reports of intercepted missiles as far away as Turkey highlight how geographically wide-ranging these risks can become.

For consumers, the implications are immediate. Trips are delayed or canceled, supply chains are disrupted, and insurance coverage becomes more complicated.

Estimated reading time: 7 minutes

Written by: Michael Giusti

March 24, 2026

Key Takeaways:

• Travel insurance may not cover war-related disruptions once a conflict becomes a known event.
• CFAR coverage can offer more flexibility, but it comes with limits.
• Supply chain and fuel disruptions can raise home rebuilding and car repair costs.
• Consumers should review exclusions and document delays or cancellations carefully.

What’s Covered in this Guide:

Table of contents

• What travel insurance covers during war or global conflict
  • When war exclusions usually apply
• What consumers should do before they travel or file a claim
• Can global conflict raise home insurance costs?
• Why auto insurance costs may rise during global instability
• Key takeaways for consumers
  • Comparison of Potential Insurance Impact & International Conflict
• Frequently asked questions about war, global conflict, and insurance

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What travel insurance covers during war or global conflict

If you are already traveling when conflict escalates, your options can be limited.

And timing matters.

Most standard travel insurance policies include coverage for trip interruption, which may reimburse unused portions of a trip or additional transportation costs if you need to return home early.

When war exclusions usually apply

However, many policies include exclusions for war or acts of war, particularly if the conflict was foreseeable at the time of purchase, and regardless of whether the action was an officially declared war or not.

In practice, this means coverage often hinges on when you bought your policy relative to when the conflict became a “known event.” Once an event is widely reported, insurers typically stop covering it as an unforeseen risk.

Travelers who find themselves stranded should first work with airlines and travel providers. Carriers often issue waivers during major disruptions, allowing rebooking without penalties. Travel insurance can then help fill in gaps by doing things like covering meals, accommodations, or alternative transportation, depending on the policy terms.

It’s also critical to keep documentation. Receipts, airline notices, and proof of delays can make the difference in whether a claim is approved.

What consumers should do before they travel or file a claim

For future travel, uncertainty becomes part of the equation.

Standard trip cancellation insurance typically covers specific, named perils, such as illness, severe weather, or certain emergencies. War is often excluded unless it directly impacts your destination in a way explicitly covered by the policy.

This is where “cancel for any reason” coverage comes into play. Cancel for any reason policies offer more flexibility, allowing travelers to cancel a trip for reasons not otherwise covered. However, they come with trade-offs, such as higher premiums, stricter purchase timelines, and partial reimbursements (often only 50% to 75% of trip costs).

And even CFAR has limitations.

CFAR policies usually must be purchased shortly after the initial trip deposit, and you may need to cancel a certain number of days before departure to qualify.

Travelers should also review supplier policies. Airlines, hotels, and tour operators may offer refunds or credits in response to geopolitical instability, even when insurance does not apply.

Unlike some other types of insurance, travel insurance pricing is not always dramatically higher for destinations perceived as higher risk. Instead, premiums are more commonly driven by trip cost, traveler age, and coverage limits.

That said, destinations with a history of instability may come with more exclusions or stricter underwriting. Insurers may limit coverage for certain regions or decline to offer policies altogether once tensions escalate.

In other words, the cost may not always rise, but the availability and scope of coverage can shrink.

Can global conflict raise home insurance costs?

While travel disruptions are the most visible effect of conflict, the longer-term financial impact often shows up closer to home.

Global conflicts can disrupt energy markets, driving up fuel prices. Higher fuel costs, in turn, increase the cost of transporting goods, including construction materials used to repair homes. At the same time, supply chain disruptions and ongoing tariff pressures can make materials like lumber, steel, and electronics more expensive or harder to source.

For homeowners insurance, this translates into higher replacement costs. If it becomes more expensive to rebuild a home after a fire or storm, insurers must adjust coverage limits and premiums accordingly.

Why auto insurance costs may rise during global instability

Auto insurance is similarly affected. Modern vehicles rely on complex global supply chains for parts, from semiconductors to specialized components. When conflicts disrupt those supply chains, repair costs rise. Even relatively minor accidents can become more expensive due to parts shortages or delays, which can ultimately push premiums higher.

Beyond travel, home, and auto, several other types of insurance are sensitive to geopolitical instability.

When it comes to commercial insurance, businesses that rely on global supply chains may face higher costs or delays, leading to more claims under business interruption policies.

With marine and cargo insurance, shipping routes may be rerouted or delayed due to conflict zones, increasing risk and insurance costs.

Key takeaways for consumers

While the specifics of any one conflict will vary, several consistent principles can help consumers navigate uncertainty:

Timing is critical. Insurance is designed for unforeseen events. Once a conflict becomes widely known, coverage options narrow.

Read the exclusions. War and related events are often treated differently than natural disasters or other disruptions.

Consider flexibility. CFAR coverage, refundable bookings, and flexible travel arrangements can provide additional protection.

Expect indirect costs. Even if you’re not traveling, global instability can influence what you pay for insurance at home.

Document everything. In the event of a disruption, thorough records can significantly improve your chances of reimbursement.

Comparison of Potential Insurance Impact & International Conflict

Insurance type	Possible impact
Travel	Trip interruption issues, exclusions, known-event limitations
Home	Higher rebuilding costs from labor/material inflation
Auto	Higher repair costs from parts shortages and delays
Commercial	Business interruption and logistics-related exposure

Frequently asked questions about war, global conflict, and insurance

Does travel insurance cover war or acts of war?

Not always. Many standard travel insurance policies exclude war or acts of war, especially if the conflict was already known when the policy was purchased. Coverage may depend on the policy wording, the timing of the purchase, and whether the event is treated as unforeseen.

Can global conflict raise home insurance premiums?

Yes, indirectly. Global conflict can increase fuel, shipping, labor, and building material costs. If it becomes more expensive to repair or rebuild a home, insurers may raise replacement cost estimates and premiums over time.

How would international conflict affect car insurance costs?

Conflict can disrupt global supply chains for auto parts, which may increase repair times and repair costs. As claim costs rise, insurers may face pressure to raise premiums.

What is cancel for any reason coverage?

Cancel for any reason coverage is an optional upgrade that lets travelers cancel for reasons not usually covered by standard travel insurance. It typically costs more, must be bought soon after the first trip payment, and often reimburses only part of the prepaid trip cost.

What should travelers do if conflict disrupts a trip?

Start with the airline, hotel, or tour provider to check for waivers, refunds, credits, or rebooking options. Then gather receipts and notices, review your insurance policy, and document everything in case you file a claim.

Looking ahead

Global conflicts are, unfortunately, not new. But in an interconnected world, their financial impact travels faster and farther than ever before.

For insurers, that means constantly reassessing risk in a rapidly changing environment. For consumers, it means recognizing that coverage is not static. It evolves alongside global events.

The most effective approach is not to predict the next disruption, but to build flexibility into your plans and ensure you understand how your coverage works before you need to rely on it.

Michael Giusti, MBA, is senior global insurance impact analyst for InsuranceQuotes.com

The post How International Conflict Can Affect Travel, Home and Auto Insurance Costs appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

Wednesday, April 15, is Tax Day, the deadline for Americans to square their accounts with Uncle Sam. When filing your tax forms, it’s easy to overlook the insurance side of the tax equation, which doesn’t rank up there with annual income, capital gains, or income tax brackets as a taxpayer priority.

Yet maybe it should, financial experts say. That’s because taxes need to be factored in when completing key documents. For instance, health, home, auto, business taxes on insurers and insurance payouts, and making the most of your deductibles are all keys to a successful tax filing process.

Written by: Brian O’Connell

March 6, 2026

How Insurance Affects Your Taxes in 2026

Insurance can affect your taxes in several ways depending on the type of coverage and how the premiums are paid. Some insurance premiums may be tax deductible, while certain insurance payouts may be taxable income. For example, self-employed individuals may deduct health insurance premiums, business owners can deduct many commercial insurance policies, and most life insurance death benefits are typically tax-free.

What’s Covered in the 2026 Tax Guide:

Table of Contents:

• How Insurance Affects Your Taxes in 2026
  • Key insurance tax rules for 2026 include:
  • Insurance Tax Treatment by Policy Type
  • These Are the Big-Ticket Insurance and Tax Issues in 2026
    • Taxes and healthcare
    • Medicare issues
    • Life Insurance Proceeds and Taxability
    • Here’s the deal on employer-paid disability premiums
    • Some insurance payouts are taxable
  • Businesses generally earn favorable insurance tax treatment
  • State and regional variation in insurance taxes
  • Don’t Make These Insurance and Tax Mistakes
    • Interstate moves
    • HSA contribution errors
    • General confusion about what’s deductible
    • Communications breakdown
    • Focus on the big picture
  • Insurance and Taxes FAQ’s

Estimated reading time: 11 minutes

Key insurance tax rules for 2026 include:

• Most personal insurance policies are not tax deductible
• Insurance payouts replacing income (like business interruption) are usually taxable
• Self-employed individuals may be able to deduct health insurance premiums
• Business insurance premiums are usually deductible business expenses
• Life insurance death benefits are generally tax-free
• Disability benefits may be taxable depending on who paid the premiums

Insurance Tax Treatment by Policy Type

Insurance Type	Tax Deductible?	Notes
Health insurance	Sometimes	Self-employed may deduct premiums
Business insurance	Usually	Considered ordinary business expense
Home insurance	No	Generally personal expense
Auto insurance	No (personal)	Deductible only if used for business
Life insurance	Premiums not deductible	Death benefit usually tax-free
Disability insurance	Depends	Benefits taxable if employer paid premiums

Insurance companies are way ahead of policyholders on the tax front, particularly in maintaining robust operational margins, and insurers often pass tax burdens on to policyholders. “These hidden costs are hardly explained clearly by the companies,” said Tyler Rodgers, global risk and forensic asset investigations expert at Privin Network in Chandler, Arizona.  “Data shows that premium increases often correlate with new state-level insurance taxes targeting large providers.”

Rodgers said his firm monitors those trends to help clients anticipate an increase in overhead in their static holdings. “If you consider yourself efficient, you know that identifying these trends early avoids budget surprises,” he said.

These Are the Big-Ticket Insurance and Tax Issues in 2026

With taxes and insurance, some factors are bigger than others, especially with these ‘front burner’ issues that consumers and businesses need to understand, and the sooner the better.

Taxes and healthcare

 One of the biggest issues tax and financial advisory specialists see each tax season is healthcare, though many filers overlook it.

“Often, there’s a lack of knowledge on the part of the people about how their type of health coverage impacts their tax situation,” said Michael Benoit, an insurance expert and founder of Contractor Bond & Insurance.

For instance, if you’re getting insurance through your employer, it’s taken out of your paycheck before taxes, so this would reduce your taxable income. “Most of my contractor clients don’t have that luxury, and they’re paying with after-tax dollars, unless they set up their business structure to allow that,” Benoit said.

The same goes for health savings accounts, which are one of the most underutilized tools in the tax incentive realm. “With HSAs, contributions go in tax-free, they grow tax-free, and withdrawals for medical expenses come out tax-free,” Benoit noted. “I tell every eligible client to max their HSA accounts out because that triple benefit is hard to beat anywhere else in the tax code.”

Additionally, employer-sponsored premiums are usually pre-tax, so you’re not paying income tax on that benefit. “Even so, you’ve got to make sure it’s coded right on your W-2 form,” said Josh Katz, founder and lead CPA at Josh Katz CPA, based in Beachwood, Ohio. “HSAs are triple tax-advantaged, but people mess them up constantly by contributing when they’re not eligible or forgetting to keep receipts for medical expenses.”

If you purchased ACA marketplace coverage, you might’ve gotten premium tax credits that need to be reconciled on your return. “Also, if your income came in higher than you estimated, you could owe some of that credit back,” Katz noted.

The number one health insurance tax problem Benoit is dealing with right now is ACA subsidy clawbacks. “Clients who were receiving premium tax credits based on estimated income are discovering at tax time that they have made more than expected and the IRS wants that money back,” he said. “I’ve watched this blindside over the course of a few of my clients in the past two filing seasons.”

Another vexing issue is that rising premiums are also driving more people to HSAs, with less knowledge of contribution limits and withdrawal rules. “I’ve had clients accidentally put too much into their accounts and then have to pay a six percent excise tax penalty that they didn’t see coming,” Benoit said.

Medicare issues

Medicare premiums aren’t deductible unless you’re self-employed or itemizing medical expenses over 7.5% of AGI. “As for state penalties, California, Massachusetts, New Jersey, Rhode Island, and DC all have their own individual mandate penalties if you don’t have coverage,” Katz said.  “A lot of people don’t realize that and get hit with surprise state tax bills.”

Life Insurance Proceeds and Taxability

Most people think that life insurance is always tax-free, and in the most common case, they’re right on the money. “If you name a beneficiary and he receives the death benefit directly, that money comes without having to pay any federal income tax,” Benoit said. “I’ve been able to deliver that good news to more families than I could count in my 15 years in the business.”

There are exceptions that often catch taxpayers off guard. “If the policy gets paid into the estate rather than directly to a beneficiary, this adds to the gross value of the estate,” Benoit said. “Once that number passes the federal threshold, estate taxes set in and take a real bite.”

There are some scenarios with limited exceptions tied to interest or estate structure. “Disability coverage creates the most misunderstanding. If the employer pays the premium and doesn’t include it as taxable income, benefits are typically taxable,” said Jennifer Schaefer, president and CEO at JS Benefits Group in Newtown, Pa.

If the employee pays with after-tax dollars, benefits are usually tax-free. “While the federal mandate penalty is $0, several states still impose penalties for lacking coverage,” Schaefer noted.  

Here’s the deal on employer-paid disability premiums

If your employer pays the disability insurance premiums, any benefits you receive are taxable income. “If you pay the premiums with after-tax dollars, the benefits are tax-free,” Katz said. “Most people don’t think about this until they’re disabled and suddenly their disability check’s getting taxed and it’s not enough to live on.” Some employers also offer the option to pay premiums yourself post-tax, so benefits are tax-free. “I always recommend taking that option if it’s available,” Katz said.

Some insurance payouts are taxable

Property insurance payouts for losses are generally not taxable as long as they don’t exceed your basis in the property. “For example, if your house burns down and insurance pays you more than you had invested in it, the excess could be taxable as a gain,” Katz noted. “Business interruption insurance payouts are taxable as ordinary income since they’re replacing lost business income.”

As for deductions, health insurance premiums are deductible if you’re self-employed. “Mortgage insurance premiums were deductible in some years, but that deduction keeps expiring and getting extended,” Katz added. “Consequently, you need to check the current law. Long-term care insurance premiums are deductible within certain age-based limits if you itemize.”

The majority of life insurance death payouts are paid to the family tax-free. “In legalese, this cash is generally used as support to the left behind,” said Marcus Denning, senior lawyer with MK Law. “Siblings retain the entire check to their relatives, and there’s no need to run the risk of having the IRS cut a chunk of the core payout. Also, any interest earned is typically considered as normal income, and it needs to be included as an additional expense on tax returns.”

Businesses generally earn favorable insurance tax treatment

Business owners can deduct most commercial insurance premiums (including liability, property, and workers’ compensation) as ordinary and necessary business expenses. However, there is a big caveat.

“Although the tax treatment for insurance premiums has remained the same, the increased costs of reinsurance and general market conditions have been driving up the costs of premiums in most areas, which is raising the overall costs of doing business,” said Sam Meenasian, vice president of sales and marketing operations at USA Business Insurance, in Burbank, Cal. “For businesses with multiple locations, remote work can create nexus and compliance obligations that can affect payroll, income, and workers’ comp. Since tax treatment can vary widely, it is recommended that you seek the advice of a tax professional.”

Business leaders need to be especially careful when documenting and filing insurance information on their tax returns. “Improper documentation of HSA contributions means avoidable and significant tax penalties,” he said. “Failing to report employer-paid disability benefits is also a source of filing errors because these benefits are typically treated as taxable income. Small businesses often overlook premium tax credits, resulting in thousands of dollars in lost revenue.”

State and regional variation in insurance taxes

The differences between states on insurance tax issues are greater than most people realize. For instance, Katz said he works mostly in the Western States, and the rules vary by state. “For example, Oregon has no sales tax and still taxes insurance premiums,” he said. “California piles on other regulatory fees that drive costs that are higher than neighboring states.”

Katz often tells clients who operate across state lines to review their tax exposure in every state where they hold a policy. “I’ve had contractors assume that their coverage was the same everywhere and get surprised when they come to filing,” he noted.

Additionally, states like New York and California tend to bear the brunt of the most regulation, and this trickles down to the amount policyholders have to pay. “Meanwhile, states such as Wyoming and Nevada keep things on the lighter side when it comes to insurance products and taxes,” Katz added.

Don’t Make These Insurance and Tax Mistakes

Taxpayers should check with their accountants and/or financial advisors on the more nuanced issues that can lead to penalties and fees if they’re not addressed. These issues should be at the top of that list.

Interstate moves

For clients who move between states, individual mandate penalties remain a real source of confusion. “Some states enforce them, and some don’t, and it’s more work to keep track of which is which than most people put in until the tax bill arrives,” Benoit said.

HSA contribution errors

Too often, people contribute over the federal government HSA limit, or they contribute when they’re not eligible because they also have an FSA, or they went on Medicare partway through the year. “Those excess contributions get hit with a 6% excise tax every year until you withdraw them,” Katz noted.

General confusion about what’s deductible

Just as often, people think all their medical expenses and insurance premiums are automatically deductible. “The fact is, most aren’t unless you’re itemizing and clearing the7.5% AGI threshold, which most people don’t hit anymore with the higher standard deduction,” Katz added.

Communications breakdown

Most insurance tax errors stem from a breakdown in communication between the insurance broker and the accountant. “We check the integrity of these data streams to ensure every deduction is legally defensible and free of exaggerated claims,” Rodgers said. “Tax season requires an investigative mindset; consumers need to use their insurance records as a verified data stream to ensure they are not paying the insurance company’s tax burden or forgoing legitimate business deductions.”

Focus on the big picture

The biggest mistake Schaefer sees is tax filers who treat insurance as just a tax benefits conversation instead of a structural and tax conversation. “How you design that conversation matters,” she said.

Insurance and Taxes FAQ’s

Are insurance premiums tax deductible?

Some insurance premiums may be tax deductible depending on the type of coverage and how it is used. Self-employed individuals may deduct health insurance premiums, and businesses can usually deduct commercial insurance policies as operating expenses. However, personal policies such as home or auto insurance are generally not deductible.

Are insurance payouts taxable income?

Some insurance payouts are taxable while others are not. Life insurance death benefits are typically tax-free to beneficiaries. However, payouts that replace income—such as business interruption insurance or certain disability benefits—may be considered taxable income by the IRS.

Is health insurance tax deductible?

Health insurance premiums may be tax deductible for self-employed individuals, allowing them to deduct premiums for themselves and their families. Employees with employer-sponsored plans usually pay premiums with pre-tax dollars, which already reduces taxable income.

Is business insurance tax deductible?

Most business insurance premiums are tax deductible as ordinary business expenses. This typically includes liability insurance, workers’ compensation, commercial property coverage, and professional liability insurance.

The post Insurance and Taxes: What Insurance Is Tax Deductible in 2026? appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

Estimated reading time: 9 minutes

For better or worse, insurance is tied closely to employment, and the state of employment in the nation today is sending mixed signals.

While unemployment remains relatively low by historical standards, recent job growth has come in below expectations, wage gains have cooled, and inflation continues to strain household budgets. At the same time, artificial intelligence and automation are reshaping job security across industries, adding a new layer of uncertainty for workers and employers alike.

For consumers, those employment trends don’t just affect paychecks, they directly influence insurance decisions across health, life, auto, and business coverage. As the labor market shifts, so does the way Americans think about protecting themselves financially.

Job growth is cooling and more workers are shifting jobs or gig work—meaning insurance decisions matter. If you change employers, avoid coverage gaps by comparing COBRA, an ACA Marketplace plan, or a spouse plan, and re-check life, disability, and auto coverage. Plan deadlines early to protect your budget.

If you change jobs in 2026, the biggest risk is a coverage lapse—especially health and auto. Compare COBRA vs Marketplace vs a spouse plan immediately, confirm your exact deadlines, and keep essential policies active while income and benefits shift. Use the 30-day timeline below to stay covered.

A Slowing, But Still-Tight Labor Market

Recent employment reports have shown slower job creation than many economists expected. In its most recent report, the Bureau of Labor Statistics reported that unemployment rates were higher than they were one year ago in more than two thirds of the metro areas it tracks.  

While the 4.4% unemployment rate remains near multi-decade lows, underemployment has increased, with more workers holding part-time roles or gig-based positions while seeking full-time employment. And job openings aren’t abundant.

Even workers who remain employed are increasingly aware that employment may be less predictable than it once was.

Inflation, though easing, continues to push up the cost of essentials, forcing households to re-evaluate recurring expenses, including insurance premiums.

That economic backdrop has ripple effects throughout the insurance market.

How Employment Trends Impact Insurance

Employment status plays a central role in determining what insurance people have, how much they pay, and how long they keep coverage.

When it comes to health insurance, employment plays an outsized role.

Employer-sponsored health insurance remains the primary source of coverage for most Americans. When job growth slows or layoffs increase, disruptions to that system are felt almost immediately.

Workers who lose jobs often turn first to COBRA, which allows them to temporarily continue their employer-based health plan. However, COBRA is expensive, since individuals are responsible for the full premium plus administrative fees. For many, it’s a short-term bridge rather than a long-term solution.

Others rely on the Affordable Care Act marketplace, where losing a job qualifies as a special enrollment event, meaning they can sign up for a new plan within a month of losing a job, regardless of what time of year the job loss happened, including outside the standard open enrollment period. Depending on income, subsidies can significantly reduce premiums, though navigating plan options can be challenging during an already stressful transition.

In many cases, life insurance coverage can also be closely tied to employment. Many workers receive group term life insurance through their employer, often at little or no cost. But these policies typically provide limited coverage and usually aren’t portable, meaning when workers change jobs or experience layoffs, that coverage typically ends.

One alternative is an individual life insurance plan, either term or permanent, to avoid coverage gaps.

Employment changes can also affect auto insurance. That is because workers who lose jobs or shift to remote work may drive less and consider reducing coverage or dropping policies altogether to save money.

That can be a costly mistake. Letting coverage lapse often leads to higher premiums when coverage is reinstated and may result in fines or penalties in states that require continuous insurance. Even a short lapse can mark a driver as higher risk in the eyes of insurers.

And the state minimum liability coverage is rarely enough to protect a driver against financial ruin in the case of a major accident. Though, maintaining at least minimum required coverage can help prevent long-term cost increases.

For employers, employment trends affect insurance in different ways. Layoffs, restructuring, and shifts toward contract labor can change a company’s liability exposure. Businesses with shrinking payrolls will likely see workers’ compensation premiums adjust, while those relying more heavily on contractors may face increased general liability or professional liability risks.

And if a business lays off employees who then claim unemployment insurance, the business’s unemployment insurance rates will likely go up in subsequent years.

Insurance Solutions After Job Loss

Losing a job often requires quick insurance decisions.

Filing for unemployment benefits is typically the first step, and there is typically a short window in which to do so. While eligibility and benefit levels vary by state, unemployment insurance usually replaces only a portion of prior income, making budgeting critical.

Health insurance options include COBRA, Marketplace plans, or joining a spouse’s employer-sponsored coverage, but the window to take advantage of the special enrollment period is vanishingly short, and after a month it may already be too late to add a new policy. Life insurance should also be reviewed, particularly if employer-sponsored coverage is ending.

Auto insurance should be maintained without interruption, even if driving habits change.

Unemployment Insurance benefits are administered at the state level, meaning eligibility rules, benefit amounts, and duration vary widely. In many states, weekly benefits replace only a fraction of previous earnings and may expire before a worker finds new employment.

That reality underscores the importance of maintaining insurance coverage where possible, even during periods of reduced income.

COBRA vs Marketplace vs Spouse Plan

Insurance Checklists for Job Seekers and New Employees

Starting a new job is a key moment to reassess insurance needs. During the whirlwind first week, taking a close look at the benefits package is essential.

• Review all health plan options carefully but know that ACA-compliant plans cover the same essential services regardless of which “metal tier” an employee buys. They just differ in cost-sharing
• Evaluate whether employer-provided life insurance is sufficient or should be supplemented
• Consider whether term or permanent life insurance better fits long-term goals
• Enroll promptly. Declining coverage initially may require proof of insurability later.

30-Day Coverage Timeline: Job Change Checklist

• Day 1–3: Confirm your benefits end date (HR or benefits portal). Ask what happens to dependents, prescriptions, and ongoing treatments.
• Day 1–7: Compare COBRA vs Marketplace vs spouse plan. Put the key enrollment deadlines on your calendar immediately.
• Day 7–14: Lock in your health plan choice and confirm effective dates so there’s no gap between old and new coverage.
• By Day 30: Keep auto insurance continuous (update mileage/commute changes) and review life & disability coverage if employer-sponsored policies are ending.

The World Without Employer-Sponsored Coverage

As nontraditional employment grows, more workers lack access to employer-sponsored benefits.

Marketplace health plans are often the primary option, and subsidies may help reduce costs. Some trade associations also offer access to group insurance products, though availability varies.

For independent workers, life and disability insurance become especially important, as income volatility can be higher and safety nets thinner.

And if a worker can see an employment change coming, taking a few steps to prepare makes a lot of sense. Before leaving a job voluntarily, workers should:

• Confirm when employer-sponsored benefits end
• Consider securing individual life insurance before losing group coverage
• Review health insurance transition options and deadlines
• Ensure auto and disability coverage remain uninterrupted

Mini Glossary

• COBRA A federal continuation option that can let some people keep an employer health plan after a job change, usually by paying the full premium.
• Special Enrollment Period (SEP) A limited-time window to enroll in a Marketplace plan outside open enrollment after a qualifying event like losing job-based coverage (often time-limited).
• Metal tiers Marketplace plan categories (Bronze/Silver/Gold/Platinum) that describe how costs are split between premiums and out-of-pocket spending—not the quality of care.

Key Takeaways for Consumers

Employment trends and insurance decisions are deeply connected. Slower job growth and economic uncertainty make it important to understand coverage options and avoid gaps.

For now, the U.S. labor market seems like it is remaining resilient, but it is clearly evolving. Slower job growth, rising costs, and technological change are reshaping how Americans work and how they insure themselves.

For consumers, the message is simple: employment may change, but insurance needs don’t disappear. Planning ahead, understanding options, and maintaining coverage continuity can help soften the financial impact of whatever comes next.

Michael Giusti, MBA, is a Senior Insurance Coverage Analyst for InsuranceQuotes.com.

The post Job Market & Insurance in 2026: Avoid Coverage Gaps & Options appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

Estimated reading time: 10 minutes

If you drive often but don’t own a car, you might assume you don’t need auto insurance. But even when you’re borrowing a friend’s vehicle, renting for work travel, or using a car-sharing app, you can still be financially on the hook after an accident—especially if the car owner’s liability limits aren’t high enough.

Non-owner car insurance is designed for this exact situation. It’s typically a liability-only policy that follows you as a driver (not a specific vehicle). It can help cover injuries and property damage you cause while driving cars you don’t own—and it can be a smart way to maintain continuous insurance history when you’re between vehicles.

Key takeaways

• Non-owner car insurance is usually liability coverage for drivers who don’t own a vehicle but still drive regularly (rentals, borrowing, car-share).
• It commonly acts as secondary coverage after the car owner’s policy pays first.
• It typically does NOT cover damage to the car you’re driving (no collision/comprehensive).
• In 2026, a non-owner policy is often much cheaper than a standard car insurance policy—but prices vary by state, driving record, and coverage limits.
• Non-owner coverage can help if you need to file an SR-22/FR-44 but don’t own a car.

What is non-owner car insurance?

Non-owner car insurance is a type of auto policy that provides liability coverage for people who:

• Have a valid driver’s license,
• Don’t own (or lease) a car, and
• Still drive regularly enough that relying on someone else’s policy feels risky.

Think of it as “car insurance without owning a car.” It’s especially common for frequent renters, frequent borrowers, and drivers who need proof of insurance for licensing reasons.

What does non-owner car insurance cover?

Most non-owner policies are built around liability coverage—the portion of auto insurance that pays for other people’s injuries and property damage when you cause an accident.

Important: Coverage details vary by company and state. Always confirm what’s included and the limits before buying.

What non-owner car insurance does NOT cover

Non-owner car insurance is not a full “everything” policy. Common exclusions include:

• Damage to the car you’re driving (no collision coverage)
• Theft, vandalism, or weather damage to the car you’re driving (no comprehensive coverage)
• Rental car “physical damage” costs unless you separately purchase a collision damage waiver (CDW/LDW) or have coverage through a credit card benefit
• Vehicles you have regular access to (example: a partner’s car you drive every week) — insurers often want you listed on the owner’s policy instead
• Business/commercial driving in many cases (depends on vehicle use and policy terms)

If your driving situation involves one specific vehicle that you use all the time, you’re often better off being added as a listed driver on the owner’s policy.

How non-owner car insurance works when you borrow or rent a car

In most cases, car insurance follows the car. That means the vehicle owner’s policy generally pays first after an accident (as long as you had permission to drive).

A non-owner policy typically provides an extra layer of liability protection if:

• The owner’s policy limits are too low to cover the full damage/injury costs, or
• You’re not fully covered under the owner’s policy due to restrictions, exclusions, or coverage limitations.

Example scenario (simple)

You borrow a friend’s car and cause an accident. The total injuries and damages you’re responsible for add up to $60,000. Your friend’s liability limit is $25,000. In many scenarios, your friend’s policy pays up to their limit first, and your non-owner policy can help cover the remaining liability costs (up to your policy limits).

Bottom line: Non-owner coverage can reduce your risk of paying out-of-pocket or facing a lawsuit when the owner’s policy isn’t enough.

Who needs non-owner car insurance? (2026 list)

If any of the following scenarios sound like you, a non-owner policy may be worth pricing out.

1) You borrow cars often

Maybe you don’t own a car in the city, but you drive a friend’s car on weekends or run errands for family. If borrowing is frequent, non-owner coverage can be a smart backstop.

2) You rent cars regularly (work travel, frequent trips)

Renting a few times a year is one thing. Renting monthly for work is another. Non-owner insurance can sometimes be cheaper than repeatedly buying extra liability coverage at the rental counter.

3) You use car-sharing services frequently

Car-share companies often include some insurance, but limits may be close to state minimums. If you want higher liability protection, a non-owner policy can help supplement (where allowed).

4) You’re “between cars” and want to avoid a coverage gap

If you sold your car, moved, or are waiting to buy a new vehicle, a non-owner policy may help you keep an active insurance history. That can matter because many insurers price “continuous coverage” more favorably than a long lapse.

5) You need an SR-22 (or FR-44) but don’t own a vehicle

An SR-22 isn’t insurance—it’s a state-required filing that proves you carry at least the minimum liability coverage required. If the state or court requires you to file an SR-22 and you don’t own a car, you may be able to satisfy the requirement with a non-owner SR-22 policy.

6) You want higher liability limits than the owner carries

If you sometimes borrow vehicles from people who carry only minimum coverage, a non-owner policy can help protect you if damages exceed their limits.

7) You drive different vehicles (not just one) across the month

This can apply to people who rotate between rentals, borrowed cars, and car-share vehicles. Because the policy follows you (the driver), it can be a cleaner solution than trying to juggle multiple add-on coverages.

8) You don’t own a car but want to be prepared for unexpected driving

If you frequently find yourself needing to drive (family needs, emergency situations, helping friends), non-owner insurance can provide consistent liability protection.

Who probably does NOT need non-owner car insurance

Non-owner coverage isn’t right for everyone. You may not need it if:

• You live with someone who owns a car you drive regularly. In many cases, the owner should list you as a driver on their policy.
• You regularly drive the same vehicle (even if it’s not yours). Insurers often want that situation handled on the owner’s policy.
• You drive only a couple times per year. It may be cheaper to rely on the owner’s coverage or purchase coverage at the rental counter for those rare occasions.
• You own or lease a vehicle. You’ll usually need a standard policy tied to that car.

Pros and cons of non-owner car insurance

Pros

• Liability protection when you drive cars you don’t own
• Often cheaper than a standard policy (because there’s no vehicle being insured for physical damage)
• Helps avoid coverage gaps when you’re between cars
• Can help satisfy SR-22/FR-44 requirements if you don’t own a car

Cons

• Doesn’t cover damage to the car you’re driving (no collision/comprehensive)
• May not apply if you have regular access to a household car or drive the same borrowed car constantly
• Not available from every insurer (you may need to call an agent)

How much does non-owner car insurance cost in 2026?

Non-owner insurance is usually significantly less expensive than standard auto insurance—but the “right” number depends on your state, record, and the liability limits you choose.

2026 cost benchmarks (helpful context)

To give you a realistic starting point:

• Insurance.com (updated Jan 2026) reports the average cost of non-owner car insurance is $407 per year.
• NerdWallet’s January 2026 rate analysis puts average standard auto insurance costs around $629/year for minimum coverage and $2,339/year for full coverage.

Why this matters: Non-owner policies don’t insure a specific vehicle for collision/comprehensive damage, which is one reason they’re often cheaper than “full coverage” policies—especially compared to brand-new 2026 car insurance rates for drivers insuring newer vehicles.

These are published averages and are not personalized quotes. Your price may be higher or lower depending on your state, driving history, age, coverage limits, and whether an SR-22/FR-44 is required.

What makes non-owner insurance cheaper (most of the time)?

• No vehicle insured for physical damage (no collision/comprehensive)
• Often lower driving frequency compared to a typical car owner
• Liability-only focus (in many cases)

What can make your non-owner cost higher?

• Tickets, accidents, or DUI history
• Needing an SR-22/FR-44 filing
• Choosing higher liability limits
• Living in a higher-cost state/metro area

How to get non-owner car insurance (step-by-step)

1. Confirm you qualify. Typically, insurers want you to be licensed, not own a car, and not have regular access to a household vehicle.
2. Decide your liability limits. State minimums may not be enough for a serious accident. If you have savings/assets to protect, consider higher limits.
3. Ask about required add-ons. Depending on your state, you may need uninsured motorist coverage, PIP/MedPay, or an SR-22 filing.
4. Compare multiple quotes. Not all insurers advertise non-owner policies online, so you may need to call an agent.
5. Get proof of insurance. Keep your ID card handy—especially if you rent cars often or need proof for reinstatement purposes.

Fastest next step: Start comparing auto insurance quotes and ask specifically for a “non-owner” policy option.

Methodology: where these 2026 figures come from

This guide references publicly available 2026 rate analyses and insurer/government educational resources, including:

• Insurance.com’s non-owner insurance average cost figures (updated January 2026)
• NerdWallet’s published January 2026 auto insurance rate analysis for national average pricing context
• Carrier guidance from companies like GEICO, Progressive, and Nationwide about what non-owner policies typically cover
• Government information about SR-22 requirements and definitions (example: state Secretary of State / DMV resources)

Actual premiums vary. For the most accurate price, compare personalized quotes.

Frequently asked questions (FAQ)

Is non-owner car insurance worth it?

It can be worth it if you drive frequently enough that relying on someone else’s liability limits feels risky—or if you need continuous coverage or an SR-22/FR-44. If you drive only a couple times per year, it may not pencil out.

Does non-owner car insurance cover rental cars?

It can cover liability while driving a rental (injuries/damage you cause to others), but it typically won’t cover damage to the rental car itself. For that, you may need the rental company’s collision damage waiver or other protection.

Does non-owner car insurance cover me in a friend’s car?

Often yes—if you have permission to drive and you don’t have regular access to that vehicle. Typically, the owner’s policy pays first, and your non-owner policy can help if liability costs exceed the owner’s limits.

Can I get non-owner insurance if I need an SR-22 but don’t own a car?

In many states, yes. A non-owner SR-22 policy may satisfy the filing requirement without being tied to a specific vehicle. Always confirm with your insurer and your state.

Does a non-owner policy cover my own injuries?

Usually not by default. Some policies may offer optional coverage like MedPay or PIP depending on your state and insurer, but non-owner insurance is typically liability-focused.

Will non-owner insurance cover me if I live with someone who owns a car?

Often, insurers will prefer you be listed on the household vehicle owner’s policy if you have regular access to that car. Non-owner insurance is usually intended for drivers who don’t have regular access to a vehicle.

Can I switch from a non-owner policy to a regular policy later?

Yes. If you buy a car, you’ll typically switch to a standard policy that insures the vehicle (and can include collision/comprehensive if you want “full coverage”).

Bottom line: should you buy non-owner car insurance in 2026?

If you’re a frequent driver who doesn’t own a car, non-owner car insurance can be a cost-effective way to protect yourself from major liability costs, avoid coverage gaps, and meet state requirements when needed.

Best next step: compare quotes and confirm eligibility rules (especially around household vehicles and “regular access”).

Compare options now: Get non-owner car insurance quotes.

The post Non-Owner Car Insurance: What It Covers, Cost, and Who Needs It appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

Estimated reading time: 10 minutes

If you’ve ever filed a car insurance claim and then watched your premium jump afterward, you’re not alone. Insurers really do raise rates after certain kinds of claims, even for long-time customers. It’s frustrating: you filed the claim because you needed help, not because you wanted your bill to go up. But once you know why premiums increase, you can spot when a claim might cost you more later, keep your rates manageable, and even snag a better deal when it’s time to shop around.

So, will filing a car insurance claim raise your premiums? Quick Answer

Filing a car insurance claim can raise your premium because insurers see claims as a signal of future risk. Increases depend on the claim type (at-fault vs comprehensive), claim cost, your driving history, and your insurer’s pricing rules. Most claims affect rates for about 3–5 years, but you can reduce the impact with accident forgiveness, smart coverage choices, and shopping at renewal.

Key Takeaways

• At-fault accident claims are the most likely to increase your rate (especially if injuries are involved).
• Comprehensive claims (theft, hail, animal hits) may raise rates, but usually less than at-fault collisions.
• Claims typically influence premiums for ~3–5 years, depending on state and insurer.
• Claim frequency matters: multiple claims in a short window often costs more than one isolated incident.
• Sometimes it’s smarter to pay out of pocket if the repair cost is close to your deductible.

• Rules vary by state and insurer—this guide explains the most common outcomes and how to protect your rate.

Now that we know the basics, let’s walk through the details of why claims raise rates, when they don’t, and how to avoid overpaying.

Why Insurance Rates Go Up After a Claim

Car insurance is pretty much a numbers game. Each company is trying to answer the same questions: How risky are you to insure?

So when you file a claim, especially a big one, it sends up a little flag for them. The company sees it as a signal that you’re more likely to file another claim in the future. And statistically, people who file one claim are more likely to file another.

Because of that, your premium usually goes up, although not as a punishment, but because they’re recalculating how risky they think you are. And just to make things even more fun, not all claims affect your rates the same way. Insurers charge different rate increases depending on:

• Who caused the accident
• How expensive the damage was
• What type of claim it was (collision, comprehensive, injury, etc.)
• Your driving history
• How long you’ve been with the company

A tiny ding in your car door may barely affect your premium, or not at all. A $3,000 collision claim, on the other hand, can increase your rates for the next three years.

What Types of Claims Raise Your Auto Rates the Most?

Not all claims are treated the same; some have a bigger price tag than others. Here’s the general ranking, starting with the least likely to raise your rates to almost guaranteed to raise your rates.

1. Comprehensive claims (usually the least impact) – These are the “act of nature” or “not your fault” situations, such as:

• Hail
• A tree branch falling
• Vandalism
• Hitting a deer

It’s uncommon for an insurer to raise your rates over just one of these situations. In most cases, it’ll take multiple incidents within a short period before they’ll even consider it. And when an increase does happen, it’s usually pretty small.

2. Minor at-fault claims (moderate impact) – These are lower-cost accidents where you’re responsible, such as:

• Hitting a mailbox
• Scraping a parked vehicle
• Backing into a pole or barrier

When the payout is relatively low, say a few hundred to a couple thousand dollars, your increase may also be relatively small. That said, the impact can vary significantly depending on your insurance company.

3. Bigger at-fault collision claims (high impact) – This type of claim is when premium rates rise the most. If you caused:

• A serious crash
• Significant property damage
• An accident involving injuries
• A claim over $2,000–$5,000
  • In these cases, you can expect a noticeable rate increase, usually lasting three to five years.

4. Injury claims (the biggest impact of all) – Claims involving injuries are the most costly for insurers. Medical bills, lost income, and potential legal expenses can escalate quickly. If you’re responsible for an accident that causes injuries to others, it’s one of the strongest indicators that your rates will increase — and by a significant margin.

How Long Will Your Rates Stay High?

Here’s the part that catches a lot of people off guard: most rate increases stick around for 3 to 5 years. And if a claim was especially expensive, a few companies may keep it on their radar even longer. The upside is that increase usually shrinks a little each year until it disappears completely. So while a rate hike is frustrating, it’s not permanent.

Does an Accident Forgiveness Program Help?

Sometimes, but it depends. A lot of insurance companies offer accident forgiveness for drivers with clean driving records, which means your first at-fault accident won’t raise your rates. But here’s what people don’t always realize:

• Not every accident qualifies
• You usually only get it once for the life of the policy
• Some companies charge extra for it
• You need a solid, clean driving history to qualify
• It doesn’t transfer, so if you switch insurers, you lose it.
• So if you’re shopping for coverage or comparing quotes, take a closer look at accident forgiveness and ask:
• Is it already included?
• Is it optional (and does it cost extra)?
• Is it actually worth it for your driving habits?

What About Accidents That Weren’t Your Fault?

This one surprises a lot of drivers. In many states, insurance companies aren’t allowed to raise your rates if an accident wasn’t your fault. But that protection isn’t true everywhere, and even where it exists, some insurers still bump premiums slightly. Why? Because from their point of view:

• Even a no-fault accident shows you’re on the road often.
• You may be more likely to file another claim later.
• Insurers look at claim frequency, not just who caused them,
  • Always check your state’s rules and your policy details. If you truly weren’t at fault, you might be able to push back on a surcharge.

How to Avoid Rate Increases: Practical Tips

Here’s the part that most people want to know: how to keep your insurance from getting more expensive than it needs to be.

1. Skip the claim if the damage is small. This is the biggest one. If the repair cost is close to your deductible, filing a claim almost never makes sense. It can actually cost you more in the long run. For example:

• Deductible: $500
• Damage: $900
• Surcharge: $200/year for 3 years = $600
  • In this case, filing the claim ends up costing more than the repair. Rule of thumb: if the damage is within about $1,500 of your deductible, it’s often cheaper to pay out of pocket.

2. Get a repair estimate before calling your insurer. You can get estimates all day long without triggering a claim. But calling your insurer first? Sometimes that creates a “claim inquiry,” which some companies treat like an actual claim even if no claim is filed. Get the estimate first, then decide whether to file.

3. Raise your deductible (strategically). If you rarely file claims, a higher deductible — like $1,000 instead of $500 — can lower your premium and discourage small claims that lead to surcharges. If you’ve got a little cushion in your emergency fund, a higher deductible is almost always worth it.

4. Ask about accident forgiveness. If you have a good driving record, some insurers include it automatically. It can save you hundreds of dollars after one at-fault accident.

5. Shop around every year, especially after a claim. This is an important one. You don’t have to stay with the insurer that raised your rates. Here’s how different insurers handle claims very differently:

• Some surcharge heavily, even for small claims
• Others barely react unless injuries are involved
• Some only penalize at-fault accidents
• Switching insurers when a surcharge hits can save you a lot.

6. Take advantage of bundling and discounts. Even if your premium goes up, you can often drop your costs by:

• Bundling auto insurance with home or renters coverage
• Enrolling in a safe-driver or usage-based (telematics) program
• Paying your policy in full using automatic payments
• Taking a defensive driving course
• Asking about discounts if you drive fewer miles

7. Keep your record clean going forward. One claim by itself usually isn’t a deal-breaker, but back-to-back claims can send rates soaring. A nice stretch with no claims will help bring your premium back down.

 Should You Ever Not File a Claim?

You should always file a claim if:

• Someone is hurt
• The damage is significant
• Another driver is involved
• There’s a chance of a lawsuit
• You hit another driver
• You’re unsure who’s at fault

For small, out-of-pocket repairs (small dings or cosmetic damage), it’s worth doing the math first before filing.

Should I File or Pay Our of Pocket?

Break-even rule of thumb: If your out-of-pocket cost is close to your deductible, filing a claim may cost more long-term.

Simple estimate:

1. Repair cost – deductible = what the insurer would pay
2. Estimate your premium increase at renewal (even a small increase adds up over years)
3. Multiply the annual increase by 3 years (typical impact window)
4. If the total projected increase is higher than the insurer payout, consider paying out of pocket.

Example:

• Repair: $1,200, deductible: $1,000 → insurer payout: $200
• If premiums rise by $15/month: $180/year × 3 years = $540
• Paying out of pocket may be the cheaper path.

Free Car Insurance Quotes — See What You Qualify For

You wouldn’t buy the first car you see, so why settle for the first insurance policy you find? A little comparison shopping can go a long way, especially when it comes to saving money. Get a free auto insurance quote now and make sure you’re getting the best deal on the coverage you need.

How We Built Our Guide

This article explains common pricing patterns insurers use after claims, including how claim type, severity, and frequency may influence premiums. Rules vary by carrier and state. For the most accurate outcome, confirm with your insurer and review your state insurance department’s consumer guidance.

FAQs: New Claims in 2026

The post How New Claims Affect Your Car Insurance Premiums (2026 Guide) appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

Estimated reading time: 12 minutes

The US insurance sector is in acceleration mode heading into 2026, with total market size expected to exceed $3 trillion by the end of next year and an 8.5% compound annual growth rate from 2023 to 2027.

The U.S. insurance landscape is shifting faster than at any time in the past decade.

Premiums across home, auto, health, and even life insurance continue to trend upward. Artificial intelligence is reshaping underwriting and claims. Climate-driven disasters are forcing insurers to redraw risk maps and, in some areas, pull back entirely. And a handful of federal policy decisions, particularly involving the Affordable Care Act (ACA), could determine whether millions of Americans pay hundreds or even thousands more per year for coverage.

Yet experts say the picture isn’t all doom and gloom. While affordability pressures remain intense, consumers also have more tools, more transparency, and more ways than ever to take control of their insurance costs.

“Affordability will dominate the consumer experience in 2026,” said Kami Adams, founder of Creative Legacy Group and a licensed benefits advisor in more than 30 states. “But consumers who stay informed, shop early, and take practical steps like mitigating home risks or reviewing subsidies will be best positioned to manage rising costs.”

Here’s what Americans can expect from their 2026 insurance experience and what they can do about potential logjams.

The Customer Outlook: Consumer Behavior Is Changing: Shoppers Are Smarter, More Active, and More Digital

The insurance industry is showing significant resilience against rising tides like continued stubborn inflation, a more stringent regulatory outlook, higher catastrophe losses, ongoing climate change risks, and major customer experience angst, thanks mainly to rising policy prices in key areas like home, life, health, and auto insurance.

That’s leading to an insurance market fissure, splitting customers into two disparate groups and making policy management all the more challenging.

A case in point. According to AI-driven predictive marketing intelligence company Sooth, there’ll be a divide between “cost management” and “stress management” insurance shoppers throughout 2026.

“Affordability pressure creates two distinct mindsets,” said Ian Baer, founder and CEO at Sooth, “The first group—younger, renter-heavy—treats insurance like a streaming subscription: something to pause, downgrade, or rotate based on price. The second group, homeowners in climate-vulnerable areas and families facing healthcare costs, will increase coverage despite complaining about premiums.”

The “save money” messaging attracts low-value switchers, while the “peace of mind” messaging will appeal to customers who stick and spend, Baer added.

Insurers should also expect more frequent comparison shopping, which is already being hyper-scaled on the digital markets front.

“People are shopping around more often, raising deductibles, trimming optional coverages,” said Gregg Barrett, CEO of Waterstreet Company in Bigfork, Montana

Home Insurance: Climate Losses, Reinsurance, and Market Retreats

Climate awareness is also rising among consumers, especially asmore homeowners now take insurers’ mitigation recommendations seriously. Fire-proof roofing, water-leak sensors, defensible space, and hurricane shutters are in demand, as these upgrades can materially affect premiums and insurability.

In the climate realm,the property insurance market remains the most volatile. Repeated climate-driven disasters, including wildfires in the West, hurricanes in the Southeast, and severe convective storms across the rest of the country, continue to push claim severity higher.

“Home and auto premiums have climbed sharply as insurers cope with bigger weather losses, pricier repairs, and more expensive reinsurance,” Barrett said. “That pressure is most intense in coastal and wildfire-exposed states like California and Florida, where some companies are cutting back or exiting altogether.”

To insurers, the retreat is all too real. Several national carriers have limited new business in high-risk ZIP codes, while smaller regional carriers have failed outright.

To stabilize markets, several states are attempting to modernize rate regulation and strengthen FAIR Plans, state-run insurers of last resort. That impact should be delayed. “Those fixes take time to show up in consumer bills,” Barrett noted.

Other industry experts say that the market will increasingly reward households that take physical steps to reduce risk.

“Coverage of climate-related perils is evolving, particularly in locations devastated by fires and on the coast,” said Mario Serralta, a Florida-based insurance attorney, who said he sees this trend daily. “Insurers are pushing proactive mitigation; roofing upgrades, shutters, defensible space,” he stated. “Long-term access in high-risk areas will depend on it.”

Auto Insurance: Moderation, But No Major Relief

Auto premiums spiked from 2022 to 2024 for several reasons, notably inflation, supply-chain delays, and higher repair costs driven by tech-integrated vehicles. The good news? Those pressures have eased, but not to the degree consumers hoped.

“Inflation is moderating, but claims severity still drives higher rates in some areas,” Adams said.

Other market veterans say some cost issues are temporary, while others are more or less permanent.

Health Insurance: All Eyes on ACA Subsidies

The affordability wildcard for 2026 is health insurance, and specifically whether Congress extends enhanced ACA premium tax credits.

“If enhanced ACA subsidies weaken, patients won’t just get higher bills,” said Dr. William Soliman, CEO of the Accreditation Council for Medical Affairs. “There will be a chain reaction that causes more denials, tougher prior authorizations, and more delays in care.”

Without subsidy extensions, millions could see double-digit premium increases in 2026. With extensions, premiums remain more stable for most marketplace enrollees. Life insurance remains the most stable category, with pricing that is moderate and predictable, tied to age and health.

AI Is Reshaping Insurance; Speeding Service, Changing Pricing, But Raising New Risks

If 2025 was the year insurers broadly integrated AI, 2026 is the year consumers begin to feel those changes firsthand.

“Artificial intelligence is quietly rewiring consumer insurance from the inside out,” Barrett said. “Insurers are using AI to sift through vast amounts of data in underwriting, speed claims handling, and power 24/7 chatbots. When done well, it means faster service and more accurate pricing.”

What can consumers expect to see? Experts cite these AI-powered customer experience upgrades.

• Shorter wait times for claim approvals
• More customized pricing
• Better fraud detection
• Lower administrative costs that could eventually reduce premiums

Many customers have already seen the benefits on the ground. “AI has made the communication process more efficient,” Serralta noted. “For instance, it can identify missing paperwork early, preventing delays.”

In the healthcare realm, AI’s impact could be transformative, though any pricing improvements remain on the horizon.

“In 2026, we’re going to start seeing drug development times shrink dramatically,” Soliman said. “What takes 8–10 years today may fall to 12–24 months. AI will cut clinical trial recruitment time by 50%.”

The biggest AI insurance risks lie in bias and opacity.

“Models trained on biased or incomplete data may misprice risk or disadvantage certain groups,” Adams said. “Consumers should ask questions and request human review if an AI-generated outcome seems incorrect.”

Other market mavens agree, noting that the public sector needs to rein in AI, and the sooner, the better. “Poorly designed algorithms can unintentionally discriminate or make mistakes that are hard to challenge,” Barrett stated. “So, regulators are now demanding explainable AI, clearer governance, and strong human oversight.”

Digital-footprint-based pricing is also emerging, adding another technology layer to the US insurance market. 

“Insurers are using AI to price risk with terrifying precision,” said Matthew Bertram, a longtime AI strategist, warns consumers. “Your digital footprint, like gig work patterns, extreme-sports posts, even health-related behaviors, increasingly affects pricing.”

Insurers will have to keep pace as digital platforms and AI tools become standard for industry customers, especially younger households weaned on the internet and mobile apps. In this environment, consumers increasingly expect certain services to be fundamental and non-negotiable, such as instant quotes, chatbot assistance, usage-based pricing, and personalized policy recommendations.

Even so, they still want human support for complex issues.

“The companies that blend digital convenience with a human touch are seeing the most loyalty,” Barrett said.

Climate & Natural Disasters: The Biggest Long-Term Driver of Insurance Change

Climate-driven losses remain the defining challenge of the property insurance market, with insurers rewriting coverage risk maps in real time.

“Climate change has turned property insurance into a frontline issue,” Barrett said. That’s changed the coverage model, as insurers now use advanced catastrophe modeling, real-time satellite imagery, and AI-enhanced risk scoring to decide where they can profitably operate.

That rising trend should lead to these consumer-impacted outcomes.

• Harder underwriting in wildfire, flood, and coastal regions
• Higher deductibles
• Stricter home-inspection requirements
• Carriers exiting entire ZIP codes

Parametric Insurance Is Rising, Speeding Up Payments in the Process

To speed up payouts after disasters, insurers are experimenting with parametric policies, which automatically pay out when a measurable event occurs (for example, when a hurricane reaches Category 3 or wildfire smoke reaches a set threshold). As parametric insurance gains momentum, consumers may welcome an insurance experience with no adjusters or documentation.

Government & Regulation: What 2026 Policy Decisions Mean for Consumers

U.S. Consumers can expect health policy, especially ACA subsidies, to be a deciding factor in household decisions about health insurance value and cost.

The central policy question for 2026 is whether Congress extends enhanced ACA premium subsidies. Experts said they expect the ACA itself to remain intact, but the cost-shaping mechanics may shift.

“Most proposals maintain the ACA framework but adjust subsidy levels or expand HSA flexibility,” Adams said. “Consumers should run subsidy estimates early, as small income changes may drastically affect eligibility.”

On the homeowner front, state-level action on homeowners’ insurance will continue to accelerate.

Exhibit A is insurance reforms being implemented by US states, with Florida’s lawsuit-reform measures already lowering rates, according to Stacey Giulianti, chief legal officer at Windward Risk Managers in Tallahassee, Florida. Additionally, California is exploring modernized rate approvals and updates to catastrophe modeling, while coastal states are expanding public backstops like Citizens Property Insurance Corp.

Those scenarios should support consumer efforts to choose the best policy based on value, and not just cost.

“Don’t just seek cheaper premiums, shop carriers for the broadest possible coverage and the most robust limits,” Giulianti advises, adding that consumers should prioritize coverage adequacy over premium chasing. “If a loss occurs, you’ll want full rebuild protection, not a bargain policy that comes up short.”

Tips for Consumers: How to Save Money and Reduce Insurance Angst in 2026

Every expert agreed on one theme: Consumers who actively manage their insurance will save the most.

Here are the most actionable steps industry experts cited for 2026.

• Shop every renewal: Don’t assume last year’s plan is still best. Do your homework and see what new features and services insurers are offering in 2026 as well as compare your rates – let IQ help you compare by entering your zip code above.
• Check ACA subsidies: “A small income or household changes can affect eligibility,” Adams said.
• Raise deductibles strategically: Leveraging plan deductible options is doable, “but only if you have a safety fund,” Adams advised.
• Bundle carefully. Make sure to compare bundled versus standalone quotes when making any big insurance ‘combination platters.’
• Mitigate home risks. Protect your home and your pocketbook byinstalling shutters, roof upgrades, sump pumps, defensible space, and ask about discounts.
• Stay organized. “Keep a one-page summary of policies, renewal dates, deductibles, and contacts,” Adams noted. Make sure to include policy numbers, policy renewal dates, insurance deductibles, coverage limits, emergency contacts, and claims history.
  • Bertram also stated that even one annual “documentation audit uncovers 15–20% waste on average.”
• Ask about AI decisions. If your claim is rejected digitally, request human review for denials or unusual premium changes.
• Shop early in high-risk areas. “Note that policies may be limited or sell out quickly,” Adams added.
• Be strategic about your digital footprint. Review digital-driven behavioral tracking habits, like limiting auto miles, not smoking, or going to the gym. In cutting overall household insurance costs, it’s free money if you don’t mind being tracked by an insurance device or software.

“If you’re going to let insurers monitor your behavior for a discount, make sure you’re gaming those metrics,” Bertram said.

• Review your policies regularly. Above all else, work with a trusted financial expert to ensure you’re optimizing your insurance experience for 2026 and not for 2025 anymore.

 “Consumers should be aware of how insurance can easily fall out of alignment with one’s real-life circumstances,” said Chris Heerlein, CEO at REAP Financial, an investment advisory firm. “Insurance policies are set in place and renew automatically with rates increasing in most cases.”

Heerlein said it’s not unusual for an insurance policy to go several years without any changes or reviews. “As accumulating small changes are made within your home and work routine year after year, an insurance policy can easily become out-of-date, very quickly,” he noted. “All it takes is to bring every policy together and examine them as you would check your pantry before a shopping trip.”

Heerlein said he’s observed redundancies and deductibles that no longer match a person’s savings. “After a thorough inventory, many are better positioned to reach out to their agent and request quotes that better fit their current life stage,” he added. “Many clients were able to reduce their overall rate by 70% just by making this adjustment.”

The Takeaway: The Long-Term Outlook and Short-Term Implications

In the shorter term, the insurance landscape in 2026 will be shaped by three major forces: rising costs, accelerating AI adoption, and climate-inflated risks. Consumers cannot control those trends, but they can control how they respond.

“In 2026, rising costs, technology changes, climate risks, and policy decisions will shape insurance,” Adams said. “Consumers who shop smart, stay informed, and take practical steps like reviewing subsidies and mitigating home risks will be best positioned to save money and secure coverage.”

Over the next decade, experts expect two Americas to emerge, with implications for the insurance market, especially home insurance.

• Households that can pay for mitigation (impact-resistant roofs, flood retrofits) and afford higher premiums.

• Households that cannot may eventually have to relocate or rely on government support to cover insurance needs.

As Serralta notes, “Insurance industry developments affect long-term access in high-risk areas and encourage proactive consumer planning.”

If 2025 was a wake-up call for consumers, 2026 will be the year they take more control than ever over their policies, now and for the long haul.

The post 2026 Insurance Outlook: What Consumers Can Expect appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

Estimated reading time: 10 minutes

With the country as politically divided as it is, there is still one issue can bring people from different sides of the political spectrum together – the threat of porch pirates.  

Each year, InsuranceQuotes.com partners with SSRS  to survey people on their experience with package theft, along with the latest holiday shopping trends for this season of inflation, AI, among other timely factors

According to this year’s survey, 28% of Americans say they have had a delivered package stolen from their porch, doorstep or building lobby. And while that is more than a quarter of all respondents, it is a bit better than two years ago, when 31% of people responded that they were victims of porch piracy.

Among the youngest respondents, however, porch piracy was a much bigger problem, with 41% of 18 to 29-year-olds reporting having a package stolen, compared with just 14% of respondents older than 65.

And while the country may be divided politically, holiday shopping will be bringing many people together. According to our survey, 55% of respondents said they will be buying at least one holiday gift for someone whose political views are different from theirs.

People in the middle-income brackets – those earning between $75,000 and $100,000 — were most likely to say they were buying gifts for people with different politics, with 70% saying this applied to them. Political independents were the most likely to say they will be shopping for people whose politics differed from their own, with 59% saying yes, while Democrats were slightly less likely to say yes, with 51% saying this applied to them.

Regardless of political party, most people said they were feeling the financial pinch this holiday season, with 60% of respondents saying that due to rising prices, they’re scaling back on their holiday gift giving this year. The highest earning respondents seemed more insulated from prices, with only 51% of respondents earning more than $100,000 saying they were scaling back, compared with 65% of respondents earning $50,000 or less. But even among those earning between $75K-$100K, 64% responded that the high costs of goods is causing them to limit their holiday shopping.

Financial worries make some sense, with the Bureau of Labor Statistics reporting that inflation is up 3% compared with last year, all while the future of the newly imposed tariffs sits in front of the Supreme Court for review.

A reliance on artificial intelligence was a bit of a holiday shopping trend, but it differed widely by age. Among all the respondents, 18% say they are using ChatGPT or another similar AI tool to assist with their holiday shopping this year – a spike when compared with 13% last year. 

But that trend didn’t hold among the older shoppers, with only 5% of respondents older than 65 saying they intend to use AI for their holiday shopping. There was a gender divide when it came to AI as well. Men in the survey were more likely than women (21 percent compared to 15 percent) to say they would use the AI tool to assist their holiday shopping.

Pop culture emerged as one of the drivers of holiday gift giving – specifically K-Pop.

Among our respondents, 21% said that, this holiday season, they’re buying at least one K-Pop-related gift, such as concert tickets, merchandise, clothing, etc. The youngest respondents were the ones most drawn to K-Pop, with 27% saying they planned to buy a K-Pop-related gift, compared with just 18% of those aged 50 to 64.

It is interesting to see the draw to pop-culture-inspired gift giving. A similar trend held true last year, with 8% of respondents said they were planning to buy a Taylor Swift-related gift, though the higher number this year suggests K-Pop may have a deeper gift-giving appeal.

Gifts this year don’t just include things that fit under the tree. This year, 36% of respondents said that, this holiday season, they’re buying at least one experiential gift (such as concert tickets, a sports event, travel, etc.). That’s a big jump from 2023 when only 28% said experiences were going to make up part of their gift giving.

This year, the highest earning respondents were the most likely to say they were gifting experiences, with half of respondents earning more than $100,000 saying they planned to buy at least one experiential gift, compared with just 33%, or about 1 in 3, of respondents earning less than $50,000.

Giving experiences has been growing as a trend for years now.

Our survey also suggests that people won’t be waiting to do their shopping, with 40% reporting that, this year, they’re starting their holiday shopping earlier than ever.

That trend makes some sense, especially with United States Postal Service timelines making shipping take longer than it has in years past.

Protecting Holiday Gifts

Shipping experts suggest a few best practices to keep porch pirates at bay this holiday season.

The first, most common suggestion is to know what is coming and when. Alisa Carroll, an Amazon spokeswoman, points out that tracking packages in real time means you can be at home when they are delivered and you can get them inside as soon as possible. The less time an item spends on the porch is less time a thief has to swipe your gifts.

Most major retailers offer customers the opportunity to offer hints or suggestions to the driver on where to best leave the package. Suggesting the best place to tuck a package away on or near your porch can keep the package out of sight and make it a less tempting target.

“We train our drivers to leave packages out of sight whenever possible,” said UPS spokesman Jim Mayer.

Even better than suggesting a bush or potted plant to tuck the package behind is to leave a secure location on the porch for drivers to deposit the package. There are self-locking drop boxes available for purchase that homeowners can install on their porches that drivers can tuck the packages into to keep them away from thieves.

Another option Mayer points out is that many shippers offer alternative locations customers can have their packages delivered to. Something like a UPS Store works as a pickup location, and other retail locations also volunteer to accept deliveries on behalf of customers, who can then come pick up their package just by showing their ID. Amazon even has a network of delivery lockers across the country people can access at all hours of the day.

Some carriers in some locations even have programs where they allow customers to provide drivers with a one-time-use remote code that allows the driver to open their garage door and leave the packages within the safety of the locked garage.

Simply having a visual deterrent goes a long way toward preventing package theft, as well.

“Even just having a highly visible camera that looks intimidating upon approaching can help keep thieves away and your home or property secure,” said Jeff Peel, CEO of security device maker Tactacam.

If the gift doesn’t come in a package, that doesn’t mean there isn’t a way to protect it, too. Experiential gifts might benefit from some insurance.

Some ticket marketplaces sell stand-alone coverage for the events they are selling.

But if the gift is a bit more elaborate, a full travel insurance policy might be in order. Travel insurance reimburses you for non-refundable expenses if a trip has to be called off due to unforeseen reasons. And if the gift was an expensive out-of-town concert, a travel policy might make sense. Buyers just need to declare the cost of the tickets when they are purchasing the policy as part of their trip so it can be included in the coverage.

Recovering From Piracy

One of the most heartbreaking things about porch piracy is that once the package is successfully delivered to a porch or a mailbox, the package is now exclusively the responsibility of the homeowner.

That doesn’t mean there isn’t recourse if a package is stolen, though.

The first thing to do if a package turns up missing is to check to see if it is in fact missing after all. A good first step is to check with the carrier for proof of delivery. Most carriers take pictures of where they left the package, and those pictures can show if the package could have just been tucked away somewhere creatively. It might just be well hidden behind a potted plant.

Next, check with family members. A loved one could have seen the package and then brought somewhere in the home you didn’t think to look.

Next, experts suggest checking with neighbors. The package could have been delivered to them by mistake, or they could have seen the package sitting out and exposed, and they might have picked it up for you to keep it out of the watchful eyes of a porch pirate.

If none of that works, experts highly recommend having some kind of video surveillance.

“App-connected cameras like DEFEND 360 give people instant eyes anywhere packages are being delivered: whether that’s on the porch, at the end of a driveway, or at a gate,” Peel said.

If the package is truly missing, it is time to report it to the carrier. While the carrier isn’t legally responsible for the package once it is left on your property, they can help troubleshoot and give you the paperwork to file any necessary claims if it comes to that.

The next step is to report the missing package to the retailer. Again, while a stolen package is not their legal responsibly, many retailers will offer refunds or replacements as a good will gesture to keep a loyal customer.

If the package was truly stolen, it’s then time to report the theft to the police. While it is highly unlikely the police will spring to action to solve a single petty package theft, it is important to file a formal report anyway, so they can know if there is a bigger trend of thefts in the area. It is also important to have a formal police report if you have to file an insurance claim.

Speaking of trends in an area, for their part, UPS is fighting back against chronic porch piracy using AI. They are using big data and machine learning to compile areas with regular package thefts so they can flag high-risk delivery locations.  

If the item was particularly valuable, a homeowners or renters insurance policy would protect it from theft. The problem with this route, however, is the deductible. Many homeowners policies have deductibles in the several hundred and even thousands of dollars, meaning there isn’t going to be much coverage left for a typical package theft.

A final place to look for protection is with the credit card used to make the purchase. Many premium credit cards offer purchase protection, which in many cases includes theft within a certain window of when you made the purchase, meaning porch piracy may be a covered event.

In the end, while porch piracy continues to be an unwanted fixture of modern life, this year’s survey suggests some cautious optimism. Porch piracy is down slightly from years past, and consumers, shippers, and retailers are getting smarter about protecting their deliveries.

Methodology: This study was conducted by SSRS on its Opinion Panel Omnibus platform. The SSRS Opinion Panel Omnibus is a national, twice-per-month, probability-based survey. Data collection was conducted from October 16 – October 19, 2025 among a sample of 1,007 respondents. The survey was conducted via web (n=977) and telephone (n=30) and administered in English. The margin of error for total respondents is +/-3.6 percentage points at the 95% confidence level. All SSRS Opinion Panel Omnibus data are weighted to represent the target population of U.S. adults ages 18 or older.

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The insurance trends for Fall 2025 are all about transition – be it responding to a shifting federal environment, or even adapting to the coming AI wave. The leaves are getting ready to change and so are several areas of the insurance industry.

Insurance is being impacted by several federal policies in fall 2025. The One Big Beautiful Bill Act changed several areas of the Affordable Care Act, as well as Medicaid. Tariffs also have the potential to ripple through several areas of the insurance industry. And changes to the federal approach to vaccines could also upend some aspects of insurance coverage.

Health Insurance

The highest profile impact of the One Big Beautiful Bill Act, which was passed earlier this year and signed into law was the changes it made to Medicaid. The law made cuts to several aspects of the program, and implemented new requirements to states, providers, and recipients.

One of the biggest changes was the so-called community engagement requirements. The law now mandates that many, if not most Medicaid recipients do 20 hours a week of paid work, education, or volunteer time in order to qualify for the federally funded health plan.

That requirement does not apply to parents of young children or the disabled or medically frail individuals, and it exempts several other categories of people with certain medical conditions.

The law also mandates that states do eligibility checks on the people it enrolls every six months, meaning every person enrolled would risk losing their coverage twice every year if they do not properly comply with the paperwork.

In 2028, Medicaid will also begin requiring a cost-sharing provision for many enrollees, similar to private insurance copays.

The law also tightens rules about which non-citizens qualify for Medicaid, putting many green card recipients and asylum seekers at risk of losing their coverage.

The One Big Beautiful Bill also made changes that will impact the Affordable Care Act.

For one, Congress opted to not extend the expanded premium subsidies that were implemented during the pandemic, meaning premiums are set to go up for most ACA plan holders beginning next year.

The law also shortened by one month the open enrollment period during which people can sign up for an ACA Marketplace plan.

It also slashed funding for the workers who help people find an appropriate policy, called navigators.

Many industry observers worry these changes will compound to mean that fewer people will be protected by the Affordable Care Act than had been covered in years past.  

Another area industry watchers are looking with a warry eye is the approach the federal government is taking with vaccines. According to the Affordable Care Act, any vaccine recommended by the Advisory Committee on Immunization Practices needs to be covered by ACA compliant plans without any charge to the patient.

That is significant because Health Secretary Robert F. Kennedy Jr. replaced all the members of that committee.  If those new members step back which vaccines are recommended, insurers will no longer be mandated to cover them. Insurers could still voluntarily cover them or cover them because of the agreements between the insurers and the private companies that buy their policies, but the federal mandate would be gone.

Tariff impact

As President Donald Trump continues to levy tariffs on countries across the globe, many of those taxes have the potential to trickle down to the insurance industry.

In the realm of property and casualty insurance, tariffs have the potential to raise post-claim prices, as well as the costs of the protected assets, which could then translate to higher premiums.

For example, with an auto policy, if an imported truck costs more to buy in the first place, then a comprehensive and collision auto policy protecting that vehicle would cost more, because replacing it would cost more.

And if that vehicle were to get into a crash, the imported auto parts would cost more, leading to a higher repair bill, and consequentially, higher premiums.

Even if the vehicle and the parts were manufactured domestically, higher raw material costs could also translate to higher consumer costs, and subsequently, higher premiums.

The same scenario goes for homeowners insurance and other building insurance, which would be affected by higher steel, lumber, copper, and other material costs.

The effect isn’t limited to property and casualty lines, either. Health insurance also stands to see higher prices from tariffs.

Just like higher component prices drive up auto premiums, many parts of the medical economy are also imported, whether that is large diagnostic equipment, or lowly IV bags and surgical gloves. And all of those higher prices could translate to higher reimbursement costs for health insurers, which can then lead to higher premium prices.

Pharmaceuticals have their own areas of concern. For one, Trump has said that an announcement regarding specialized tariffs targeting imported finished medicines will be announced soon. Any increase in underlying prescription costs will be borne by the insurers who have to cover them.

But it isn’t just imported finished medicines. The active pharmaceutical ingredients – the raw materials that go into medications – are almost all imported, even if the medicine is manufactured domestically. Higher raw materials costs lead to higher finished goods prices, which could all trickle down to the premium.

AI and Insurance

Corporate earnings reports are rife with how artificial intelligence is sweeping nearly every corner of the economy, and the insurance industry is no different.

While state insurance regulators may limit precisely how artificial intelligence, large language models, machine learning, and the like can be integrated into various areas of the insurance value chain at the moment, industry leaders are discussing many places they would like to see it introduced quickly.

The first areas of the insurance ecosystem that are most implementing artificial intelligence are also the areas that have, in the past, been outsourced abroad. While in years past a call center in India may have fielded customer calls and done basic back-office functions, things like AI chat bots and language recognition models are stepping in now. But the future of the technology has a long runway.

One of the areas ripe for AI innovation is underwriting. With some policy types, such as life or commercial, AI’s ability to digest huge data sets – such as social media feeds, customer reviews, and other big data sources – could help write policies with rates hyper customized to each policyholder’s risks and do it in mere moments.

With auto insurance, an AI-powered insurance app could integrate with the vehicles’ navigation systems to offer up real-time insurance pricing depending on which route was chosen that morning, steering the driver to lower traffic – and lower risk – routes. And if the driver were to get into an accident, an AI-powered app on the driver’s smartphone could integrate data from the vehicle’s sensors, along with photos of the damage uploaded on the spot, comparing it with current market pricing data, to give claims estimates in near real time.

In the back office, AI tools could take over a lot of the tedious work, such as writing coverage opinions, or processing prior authorizations. And since AI doesn’t get tired, it could do the work around the clock.

And once claims are filed, AI could easily comb through the endless reams of data, looking for fraud in ways that could slip past a human examiner.

While these are all rosy scenarios, AI critics warn that as the technology is moved into places like underwriting and rate setting and claims processing, a darker side could emerge. AI tends to double down on what it perceives as trends, making it uniquely susceptible to biased outcomes. In the insurance world, bias against a protected class isn’t just bad business. It is illegal. And when it comes to decisions made by AI, many are done in a so-called black box, meaning it isn’t obvious why one policy was priced one way, as opposed to another.

Still, AI could be a valuable tool, not just in helping insurance on the back end. It could also become a valuable risk-management tool. Many vendors are already feeding information, such as aerial and satellite photography into AI models to evaluate roof conditions and wildfire risks – meaning if used well, it could actually avoid claims in the first place.

Season of change

As Fall 2025 unfolds, the insurance industry is navigating a season of transition on multiple fronts. But insurers must also keep a close eye on the natural environment. With hurricane season still peaking into late fall, and wildfire risks intensifying in the West, weather-related catastrophes remain a looming uncertainty that could reshape balance sheets overnight.

The months ahead will challenge insurers not just to price risk accurately, but to help families and businesses weather both economic shifts and the storms — literal and figurative — that lie ahead.

Michael Giusti, MBA, is an analyst for InsuranceQuotes.com

The post Fall 2025 Insurance Guide: Analysis of Health Policy, Tariffs Impact & AI appeared first on Insurance Quotes - Get Multiple Auto Rates - Insurance Quotes.

For students heading off to college, there are insurance implications for many aspects of their back-to-school preparation. Students need to contend with health insurance, renters insurance, automotive insurance, and depending on their individual situations, they may potentially need to consider tuition insurance, life insurance, travel insurance, and even moving insurance.

We’ll break down these back-to-school options down one at a time here.

College Student Health

One of the first and biggest areas families need to think about when it comes to insuring their college students is their health. That’s true even if the family has perfectly fine health insurance back home.

If the student is going to school in the same metro area as the family, then staying on that family health plan is probably the best option. But that doesn’t mean they get to stop thinking about health insurance. That is because most universities require their students to carry sufficient insurance in order to enroll, and to make sure everyone is properly insured, those schools often automatically enroll every student in an insurance policy that partners with the school – whether they have a policy already or not.

These school-partnered plans are typically good, and often comparatively affordable plans. They cover doctors, emergencies, and prescriptions. But if the student already has health insurance, it can be redundant. If that’s the case, the student needs to show the school their proof of insurance, so the school-partnered plan is waived. If they don’t do that in the first week or so of school, the school-provided plan can be automatically charged to the students’ tuition bill. If the student shows proof of adequate insurance before that deadline, the school will waive that extra line item, which is typically several thousands of dollars.

On the other hand, if the student is going to school in an area far from home, the family’s existing plan may not actually be appropriate. That is because health insurance plans separate their providers into in-network and out-of-network providers. Access to the network also applies to pharmacies.

For most health plans, the in-network providers, which cost substantially less to use, are located geographically close to the policyholder’s home – typically the parents’ home city.

So, if the student is going out of state, or even to the other side of a big state, their parents’ policy may not be the best option, with the in-network providers likely being hundreds of miles away from their student.

If that is the case, then the school-partnered health insurance plan is a great place to start looking for other options, but it isn’t the only place.

Sometimes the parents can contact their insurance company and see if they can purchase an extended network, meaning the providers close to their child’s school may become in-network. Paying for an expanded network can sometimes be less expensive than adding an additional policy for the child.

Another option is to look at is an Affordable Care Act Marketplace plan. This is especially attractive if the parents are also on a Marketplace plan themselves. That is because even though they would have to purchase a new policy for the child, the way the federal government calculates policy subsidies, the amount the parents are paying is worked into the same equation as the child, so the students’ policy may not cost a whole lot more after the premium subsidies are figured in.

One key to keep in mind is that even though health insurance can typically only be purchased during open enrollment, moving to a new ZIP code is considered a qualifying life event, meaning that all policies will allow changes after a move away to school – as long as they are made within a tight window of the move. 

Student Auto Insurance

If the student is a driver, auto insurance also needs to be top of mind.

Much like health insurance, the first option families need to consider is sticking with the parents’ plan. Piggybacking off a parent’s policy is almost always less expensive than having a teenager get their own policy.

If the student is going to school in town, not much needs to change, other than ensuring the agent applies a good-student discount.

If the student is moving out of town, letting the agent know where the vehicle will be is key.

If the student brings the vehicle to school, their rate could go up – or down, especially if the move is from a high-cost metro area to a low-cost rural school or vice versa.

It’s important to not skip letting the agent know about the move, though, or else there might be consequences or even refused coverage if there is an accident and the insurance company learns the vehicle was not being kept in the place that they rated it.

If the student opts to leave the vehicle at home while they go off to school, most insurance companies will offer a substantial discount because the vehicle will likely be just sitting in the driveway for most of the year. And if that is the case, families might also opt for a pay per mile vehicle telematics device for cheaper insurance rates, which they can plug into the parked vehicle in exchange for a much lower rate once the insurance company sees how seldom the vehicle is being driven.

Student Renters Coverage

Even though students aren’t starting out life with a house full of high-end possessions, getting renters insurance is more important than it might first appear.

First, even though they don’t typically have high-end art and jewels in their dorms, students do generally come to school with a valuable phone and laptop, not to mention a closet full of clothes, which would cost many thousands of dollars to replace.

If the student is moving into a dorm room, then their parents’ homeowners insurance would generally offer them some protection. However, a parents’ homeowners policy isn’t always the ideal option to protect a college student, for a number of reasons. First, the parents’ deductible would apply to any claim. And if the parents live in an area with costly homeowners insurance and have opted for a high deductible to keep policy premiums down, there might not be much coverage left if a $1,000 laptop were to get stolen. Second, if a student were to make a claim, that would be a hit against the parents’ claims history, which might hurt them when it comes time to renew.

And the parents’ homeowners policies will never cover their child’s possessions if they live in an off-campus apartment.

For those reasons, students often opt for a renters policy instead.

Since they are not covering a primary residence, premiums for a renters policy are typically very low – just a few hundred dollars a year in general. They also have correspondingly low deductibles, meaning a $800 phone could be mostly covered if it was inadvertently tossed off a fourth-floor balcony.

Families can shop renters policies from any agent who sells homeowners plans. They can also work with the company that partners with the university, which will often offer very competitive rates.

In addition to covering the students’ property, renters insurance has a few other nice add-ons. For one, it generally carries a liability portion, which would kick in if the student were to accidentally cause damage to someone else’s property – say they were playing hall sports and inadvertently knocked a drinking fountain off the wall, flooding the floor.

Renters policies also typically protect against defamation. So, if the student were to get into a social media fight with someone and take it a bit too far and falsely damage their reputation, the renters policy would potentially hire an attorney to defend the defamation suit and could help pay any judgement or settlement that might come from that. 

Renters policies also typically include a medical provision, which would help pay for the medical bills of any guests in the home who are accidentally harmed, such asif a guest were to fall down the student’s stairs. The medical provision could cover the several-hundred-dollar bill from urgent care.

In the case of a mandatory evacuation, or if the student’s apartment were to get damaged, renters policies also cover loss-of-use. So, if the student had to stay in a hotel briefly, the policy would pay for those added living expenses.

Two things renters insurance do NOT cover is floods and earthquakes. If the student has a basement apartment in an earthquake zone, those separate policies would be worth buying in addition to the renters policy.

Student Life

In general, life insurance is meant to replace someone’s income if they were to die suddenly while someone else is relying on them. This makes life insurance policies ideal for young families. It also means that if the student is a young parent, or if they are a caregiver for someone else, a term life policy would be a good way to make sure those people were protected if something were to happen to the student.

There is also a niche situation where life insurance might make sense for a student, even if they are not a parent or caregiver:  if the student’s parents are helping them launch their lives in the form of a loan that they expect to be paid back.

The parents might be taking out a private student loan for tuition or even cashing out retirement savings to help pay tuition or buy a first house or to help the student launch a business after graduation, with the expectation of getting paid back later. In this case, if the student were to die an untimely death, the parents would never get paid back. An inexpensive term policy naming the parents as a beneficiary makes sense here.

And since the students, by the nature of being young adults, tend to be in good health, their term policies would be very inexpensive compared with someone in their 50s trying to secure similar coverage.

Tuition Insurance

Families are investing thousands of dollars each semester for their children’s education. If something where to happen that kept the student from finishing the semester, there aren’t a lot of options to recover that investment.

If the family were to see these roadblocks coming soon enough, they could have the student withdraw from the university for a full refund. Unfortunately, the window to do this is vanishingly small. Often this must be done within the first week or two of class. After that, the only other option is to withdraw midway through the semester, where they may only be entitled to a pro-rated refund. And not all schools even offer refunds at this point.

So, unless the family were to luck out and be able to withdraw quickly, they would lose the entire semester’s tuition payment.

This is where tuition insurance comes in.

Tuition insurance protects families if their student were to get sick during the semester, or if they were hurt in an accident and couldn’t finish the semester. Tuition insurance often also kicks in if the tuition payer were to die or lose their job.

Tuition insurance covers sudden, unexpected illness that would keep the student from continuing to study. It also covers chronic issues that get worse and make studies impossible.

Tuition insurance is often offered as an option by the school, which partners with a private provider who writes the coverage. Some specialty insurers also sell these policies directly to families.

Tuition insurance typically gives a full refund for tuition no matter how far into the semester the crisis happens, and it also often covers the costs for room and board and fees.

Many policies also have add-on services, such as travel and transportation assistance in the case of a covered event, and many offer a service to help get the student’s vehicle home if they were to fly home unexpectedly for a covered reason.

Student Travel

Many epic trips were born from a conversation in the quad — whether that is a spring break blowout or a European backpacking adventure.

In some cases, these trips would benefit from travel insurance. In other cases, students might do better taking on the risk themselves.

Travel insurance reimburses travelers for non-refundable up-front costs that were lost because the trip was called off for a covered reason. This could be because the travelers fell ill, or because a wildfire swept through the town they were about to visit.

But that isn’t all a travel policy protects students from.

Travel policies also protect their luggage. So, if their checked bag is lost, the travel insurance would kick in and reimburse them for their lost clothing.

If the trip were delayed for a covered reason, the travel policy may step in and help with housing costs and food and then help re-book the trip to get it back on schedule.

But one of the biggest reasons students might consider travel insurance is if their adventure takes them out of their home health insurance coverage network.

If the student were to travel to Europe and then fall ill, the travel insurance policy would help find and pay for a doctor or emergency room, even in places where their home health insurance may not reach.

All that said, if the trip is less exotic, travel insurance may be overkill. For example, if the spring break trip is just a quick road trip and hotel stay in Florida, there isn’t much in the way of non-refundable up-front costs a travel policy might pay for.

And if it is just a flight home, the airline will typically have enough of a refund policy to keep the student protected.

Moving In

When it comes to moving into the dorm or the apartment, it is important to know that a homeowners or renters policy likely won’t help if all their worldly possessions are ruined. That is because these policies are meant to kick in if a covered event were to happen to the home. But in the case of a moving van – the possessions are not in the covered property.

Some policies protect against theft away from home. So, if the van were to be stollen, it could be covered.

But if reckless movers were to smash a television, another type of coverage would have to kick in.

When it comes to moving, there are generally three types of protection: Released Value Protection, Full Value Protection, and Third Party Insurance. These first two sound similar, but they are very different. Most moving companies automatically offer released value protection as an included cost of the move, but it comes with a big catch. Its protection is based on the weight of the object, not the value of the object. So, if a 10-pound flat screen TV were broken, released value protection would only reimburse $6 – nowhere near enough to replace the item.

Full Value Protection is also offered by the movers, but it is a paid upgrade. It is more generous, but its coverage is typically limited to $100 a pound for each item’s value.

Third party insurance protection is a separate policy that the customer has to buy. The moving companies often offer these policies as well, but they are written by third party insurers and tend to be the most generous when it comes to covering damaged items but are also the costliest.

K-12 Insurance for Your Kids

College students aren’t the only ones who need to be thinking of health insurance.

When pupils are heading back to their K-12 classrooms, there are a few places where parents need to make sure their insurance is secure.

First, if the parents don’t have a health insurance plan that covers the child, they might look into the Children’s Health Insurance Program. That is a federally funded program run by each state to ensure that middle- and low-income children are covered with adequate health insurance. And making sure they have coverage is essential, especially if that child is the kind who is likely to fall from the monkey bars and break an arm, or even just come home with a case of the class sniffles.

One major advantage of the CHIP program is that it has rolling open enrollment, meaning families can sign up at any point of the year, as long as they qualify.

Health insurance is also important for the back-to-school vaccines.

All Affordable Care Act compliant health insurance plans, including CHIP and Medicaid, cover required vaccines at no cost to the patient.

And if the child is looking to get involved in sports, parents can use the child’s annual well-child visit – which is covered at no cost to the family – to have the doctor fill out the physical forms.

If the family forgets to get the physical at the annual visit, they might have to schedule a separate visit, along with a separate co-pay to get those physical forms filled out. And most schools require students to have a new physical for every year they participate in sports.

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