Car insurance is getting more expensive, with the average annual cost of full coverage climbing more than 40% from 2021 to 2025, according to Insurify.
Consumer advisor Clark Howard shares practical ways drivers can fight back against rising premiums, including comparison shopping, using an independent insurance broker, considering a higher deductible, and checking for defensive-driving discounts.
He also explains why you should research insurance costs before buying your next vehicle
The average annual cost for full coverage
car insurance went up by over 40% from 2021 to 2025.
That's according to Insurify.
Boston 25 Consumer Advisor Clark Howard has
the way to get some rate relief.
They had me low the first year, and then next year,
no tickets, no accidents, nothing.
And it goes up.
And that cycle with car insurance rates can continue over and over.
And I'm like, why does it keep going up?
So what can you do about it?
First, carefully consider the type of car you buy.
According to Insurify,
to buy full automotive coverage on a Tesla Model 3
will set you back about $300 a month.
A Ford Explorer? $168 a month.
And a Subaru Crosstrek? $138 a month.
Electric cars can save you money on gas and routine maintenance,
but they cost so much more to repair, leading to higher premiums.
So you need to research rates before you buy any car.
When you got that renewal, what'd you do?
I called them and asked them what's going
on because it was like a big jump.
Getting that annual notice doesn't mean you're locked into those rates.
You have to comparison shop, and if you find searching
for car insurance to be too much of a hassle...
They don't just get to arbitrarily get an increase,
you know, because they didn't hit their profit margin.
Independent insurance brokers can search across multiple insurers
to find what would best suit your needs.
One thing you can do to fight back...
If you're willing to take on more of the financial risk,
then raising your deductible is a good thing.
If you're still paying off your car loan,
check with your lender about your maximum allowed deductible.
Raising your deductible will also help you avoid making small claims.
So you're not finding any deals.
I'm not finding any deals.
If you've searched around but aren't finding any better rates,
check to see if your state offers a defensive driving course
that gets you a mandatory discount.
And check your credit report for errors because insurers may use
this to determine how likely you are to file a claim.
And everybody's trying to save money. Everybody needs auto insurance.
The biggest dirty secret is a lot of the sites you see online
that are supposedly for comparison shopping.
Or actually fake comparison sites to push you to one company.
How do you compare prices?
You have to call each company
or go to each company's website to get a quote for what you need.
I'm Clark Howard.
