In 2026, new automotive technologies are expected to become widely available to consumers at more affordable prices, making hybrids a genuinely viable option. However, their increasing complexity has also made them expensive to repair and insure.

Even minor issues, such as a faulty sensor, can result in repair costs that exceed the purchase price of a comparable non-hybrid vehicle.

Our latest research points to three big shifts that are hitting the road right now:

1. Hybrids are the most affordable option

In previous years, hybrid vehicles were considered to be an increased price option; however, the landscape has now changed.

With the introduction of federal Electric Vehicle (EV) tax credits being phased out, manufacturers are now creating a plethora of hybrid vehicles that are not only less expensive to purchase but also less expensive to operate than traditional gasoline-powered vehicles. This is the first time that “going green” will actually be seen as the smart financial decision for most buyers.

2. The “Tech Tax” on insurance

As the technology in vehicles continues to advance at a rapid rate, we are seeing sharp increases in insurance rates due to the now-common “tech tax” that we are seeing for all types of drivers.

Data shows that in the past, only those drivers with a poor history of driving would have had to pay a higher insurance premium, but the amount of sensors and cameras now included in the average vehicle can result in an estimated $3,000 in repair costs for a simple fender bender. As a result, automobile manufacturers and insurance companies are imposing these increasing repair costs directly on the vehicles’ owners by way of higher premiums. 

3. Screen fatigue is already here!

If you enjoy the feel of physical buttons on your vehicle, 2026 may be a hard year for you. A growing trend is the advent of “Software Defined Vehicles”, where the dashboard effectively becomes a single large iPad.

This provides significant savings to brands during the manufacturing process and causes most cars to have an overall gadget-like experience rather than the traditional machine-like feel. This movement is particularly unpleasant for many of the older generation, who are used to using their cars as machines and not gadgets.