Insurance rates rising, here’s what you can do

March 18, 2025

By Kim Komando

My car insurance just jumped 32%. No, I didn’t get into an accident or rack up a few speeding tickets. Since 2020, car insurance rates have skyrocketed by 37%, and in 2024 alone, they climbed another 16.5%. Some states saw hikes of over 50%!

Even if your ride isn’t fresh off the lot, you’re paying the price.

🚗 New cars = $$$ repairs

Bumpers used to be, well, bumpers. Now? They’re loaded with radar sensors, cameras and computers for crash prevention and parking assist. Even a minor fender bender can cost thousands to fix. But there’s more…

💡 LED headlights are brighter: Gone are the days of swapping out a $20 bulb. A new LED headlight? $1,500 or more.

⚡ EVs cost more to repair: On average, EV repairs cost $6,618, compared to $4,437 for gas-powered cars. Why? Battery replacements, software issues and the average EV repair take 20 days. That’s 40% longer than gas cars.

🛠️ Aluminum is lighter: Manufacturers use aluminum to boost fuel efficiency and safety, but it’s harder to repair than steel and costs more.

💰 How to save on your car insurance

• Review your coverage – Do you really need full coverage on an older car? Raising your deductible can lower your monthly payment.
• Ask about discounts – Got an anti-theft system? Accident-free record? Defensive driving course? Call your agent and ask what you qualify for.
• Try usage-based insurance – If you don’t drive much, programs like Mile Auto or Nationwide SmartRide could save you 30% or more.
• Bundle up – Combining auto, home, life or even pet insurance with one provider can unlock serious discounts.
• Compare rates –  Use sites like The Zebra or Insurify.

🧭 What about those trackers

“Just pop a tracker in your car, and boom, lower rates!” Sounds good, right?

Well, that device tracks your speed, braking and every trip you take. I hear you: “Kim, our phones already track us.” True, but I’m not handing over even more data for a tiny discount.

If you’re considering it, ask your agent how much you’ll actually save. Then you can decide if it’s worth Big Brother riding shotgun.

🍝 Why does pasta always have to pay so much for car insurance? It can’t drive a car without making it al dente.