Contrary to popular belief, the car insurance industry is anything but boring. In fact, there’s no shortage of weird news that can actually come in handy for everyday drivers. Leverage it to protect yourself and your vehicle in the year ahead.
Below, you’ll find our weird car insurance news roundup for January 2026.
GEICO sues Michigan driver for not listing her 12-year-old on her policy
GEICO has filed a lawsuit against a woman in Michigan because she failed to add her 12-year-old daughter to her car insurance policy.
According to GEICO, Michigan’s personal injury protection (PIP) rules require that everyone in the household, including non-drivers, be listed. GEICO believes the omission allows it to deny benefits after the woman filed a car accident claim.
The driver, Cari McCaskill, got T-boned while driving her 12-year-old daughter and her daughter’s friend. GEICO said it has no duty to pay any collision or personal injury benefits because McCaskill did not list her daughter on her insurance policy.
Los Angeles woman gets caught with “crash and buy” car insurance fraud
A woman in Los Angeles has been charged with “crash and buy” insurance fraud for allegedly purchasing a policy after an accident had already occurred.
Authorities believe she lied about when she purchased coverage to make it appear the coverage was in effect at the time of the crash.
Insurance underwriter: Filing a claim doesn’t always raise your car insurance rates
Most drivers assume their car insurance rates will increase after any accident, but one insurance underwriter claims that’s not true. TikTok creator Cara (@friendlyneighborhooduw) who claims she works as an underwriter says premiums shouldn’t go up after a not-at-fault accident.
The underwriter explains that only certain types of claims should trigger rate hikes, and it’s a good idea to check your declarations page to see which ones they are. If your rate has increased, she also urges you to call your insurer to find out why.
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Root joins forces with Kikoff to make car insurance shopping easier
Root, the tech-focused car insurance company, has partnered with Kikoff, an AI-powered personal finance app, to simplify the way users buy car insurance.
Users can get auto insurance quotes directly within the platform. From there, they can compare their options and finalize coverage. The companies believe this integration will help Kikoff users make informed financial decisions.
Ohio bill strives to add OEM parts options into auto policies
Ohio House Bill 636 would require car insurance companies to offer an OEM parts option, even when aftermarket parts are more affordable. Original Equipment Manufacturer (OEM) parts match your car exactly but cost more. Aftermarket parts are cheaper and widely used, but quality can vary.
If a policyholder opts for OEM parts and covers the cost difference, the repairs must be made with them. The bill also mandates written estimates to clearly convey aftermarket parts and ensure consumers understand their rights.
Arizona students with good grades save a significant amount of cash on car insurance
In Arizona, students may save on their auto policies by showing they’ve earned at least a B average in school. As long as they’re enrolled full-time and under 19, they can get about 10% off their premiums after uploading their report cards.
Families in Tucson save between $700 and $2,000 through this program. Note that good student discounts vary by insurance carrier.
Missouri bill aims to end credit-based car insurance rates
Lawmakers in Missouri have introduced a bill that would make it illegal for car insurance companies to use credit scores when determining rates. If it’s passed, they’ll have to consider other factors, such as vehicle type and driving history. Those who support the bill believe it would make car insurance more affordable and fair.
New York’s car insurance savings plan is already controversial
Kathy Hochul, the governor of New York State, has proposed car insurance reforms to lower premiums by cracking down on fraud and tightening serious-injury thresholds.
Staged accidents and excessive litigation are the culprits behind New York’s high car insurance rates, Hochul said. As part of her reform agenda, Hochul is proposing a cap on non-economic damages for drivers who were engaged in criminal activity at the time of a crash. The cap would apply to uninsured motorists who violate state financial responsibility laws, drivers convicted of impaired driving, and individuals who commit a felony or flee the scene.
She is also pushing for new legislation that would allow prosecutors to pursue criminal charges against anyone involved in organizing a staged accident — not just the driver involved in the crash.
“New Yorkers should not pay more for the same coverage, and this is the year we’re going to do something about it,” Hochul said. “We’re putting the brakes on fraud and ending a system that rewards illegal behavior.
Sources
- New York Post. “Hochul pledged to save NYers a bundle of money on car insurance, but plans are already facing pushback.” Accessed January 2026.
- Beinsure. “Ohio House Bill 636 would force OEM parts option into auto insurance policies.” Accessed January 2026.
- NBClosangeles.com. “LA County woman charged in ‘crash and buy’ auto insurance fraud.” Accessed January 2026.
- Click On Detroit. “Morning 4: GEICO sues Oakland County woman for not listing her 12-year-old on car insurance policy — and more news.” Accessed January 2026.
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