Why Auto Repair Costs Are Rising in 2026 And How It Impacts Your Premium

If it feels like car repairs cost more than ever, you’re right. Across the country and especially in Mississippi, auto repair expenses continue to rise in 2026. Those higher costs do not just affect repair shops. They also play a role in how auto insurance premiums are calculated.

Here’s what’s driving the increase and what it means for your coverage.

Why Auto Repairs Cost More Today

Several factors are pushing repair costs higher than they were just a few years ago:

Labor shortages

Qualified auto technicians are in high demand. With fewer skilled workers available, labor rates have increased, making repairs more expensive even for minor accidents.

Higher parts prices

Vehicle parts cost more to manufacture and ship. Supply chain challenges, inflation, and increased material costs all contribute to higher prices for bumpers, headlights, and body panels.

Advanced vehicle technology

Modern vehicles are packed with sensors, cameras, and driver-assist systems. After even a small collision, these systems often require specialized recalibration, adding time, expertise, and cost to the repair process.

A simple fender bender today can involve thousands of dollars in repairs compared to similar damage a decade ago.

How Repair Costs Affect Insurance Premiums

Insurance premiums are based on risk and replacement costs. As repair expenses increase, insurers must account for higher claim payouts. That can result in:

• Higher premiums at renewal

• Increased comprehensive and collision rates

• More emphasis on accurate vehicle valuations

Even safe drivers may see premium changes because rising costs affect everyone on the road.

What You Can Do as a Driver

While you cannot control repair prices, you can make sure your policy still fits your needs:

• Review your coverage limits and deductibles

• Make sure your vehicle value is accurate

• Ask about discounts you may qualify for

• Consider whether your current coverage matches how you drive today

A regular policy review can help identify savings or better coverage options.

Let Dehmer Insurance Help

If your auto insurance premium looks higher this year, you are not alone, but you may still have options. Dehmer Insurance can review your policy, explain what is driving the changes, and check whether you are still getting the best rate for your situation.

Contact Dehmer Insurance today for a quick policy review and make sure your coverage keeps up with today’s repair costs without overpaying.

Steele Dehmer of Gluckstadt is the agency owner at Dehmer Insurance Agency in Madison, Mississippi.