Why Has Your Car Insurance Gone Up? (And What You Can Do About It)
Inflation, technology and bad drivers have jacked up everybody’s insurance rates, but there are a few things you can do to possibly lower yours.

Have you noticed that the cost for your auto insurance seems to be on the rise? You’re not alone. It doesn’t matter where you live, what you drive or who you are, nationally we are seeing rates increase by 30.9% over just the last few years. But why and what can you do about it? Let’s answer both of those questions right now, before you pay your next car insurance installment.
First, let’s tackle a few reasons for perspective. Some of them may actually surprise you.
Reason No. 1: Inflation has been going berserk.
You knew this was coming, so we might as well address it right off the bat. Inflation has not only been at a record high recently, it has been increasing at record levels year over year for almost five years. The result is everything is costing more money, and everything includes the cost to insure drivers and their cars.
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Reason No. 2: Technology in vehicles.
This is a frustrating one to be sure. Technology, while it can certainly make our cars safer to drive, comes with a cost, literally. Whereas cars used to be, well, just cars, today they are a combination of car, computer, sensors, cameras, transmitters and, yes, even artificial intelligence. Guess what? Those items not only are expensive to buy, they require trained professionals to properly install. More money on parts, and more money to install those fancy-shmancy parts.
Reason No. 3: Increases in frequency and severity of claims.
More people are getting involved in auto accidents, and each auto accident is costing more money than it previously did. After the COVID-19 pandemic, there was a drastic uptick in how many people were having accidents and what they did after that accident. Gone are the days of the scratched bumper, a shrug, shaking hands and parting ways with an apology. Folks are demanding reparations, and that ends up costing all of us down the line in higher premiums. Which leads us to reason four…
Reason No. 4: Changes in driving behavior.
Even as we continue to hear endless debates about working from home, overall the number of miles being driven has gone up, way up. More miles driven means more exposure to the road, and yeah, that guy, that other driver who is always the one at fault. Distracted driving is also a high contributor to this trend as drivers are spending time looking at their mobile devices rather than the traffic signal rapidly approaching.
These four reasons have created an environment where more cars and drivers think they are at Disneyland, speeding along the Autopia without a care in the world or bumping into each other on the former Tuck & Roll’s Drive ’Em Buggies attraction.
So what can you do about it? Surely if you are a safe driver and don’t partake in any of those irresponsible actions, you can lower your auto insurance rate? The answer is yes.
What to consider to lower your rate
Physical damage deductibles. Is your car worth the money you are paying right now to insure it? If not, remove physical damage coverage altogether. If it is, then find out how much you can save with a higher deductible. The higher the deductible — say, $1,000, $2,500 or higher — the lower the premium will be.
Multiple policies are better than one. If you own a home, condo or are a renter, then you likely need to have an insurance policy. Many insurance companies that offer those policies also offer auto insurance and will lower the rate on both policies if you give them the business. So check with your property insurer and get a quote for your auto insurance, and vice versa. Putting both policies with the same insurance company will save you money.
How much do you drive your vehicle? Times have changed, and although that’s a cliche, it’s true. In the past, you may have gotten in your car as the sun was rising, cup of joe in hand, and hit the road for your adventurous drive to — what was it called? oh, right — the office.
Today, you may be working from home. If you are not making that daily commute, your time on the road has decreased, and that means your likelihood of having an accident has gone down as well. Check with your agent, broker or insurance company directly and ensure that they are rating you for the actual miles being driven today, not the miles you were driving way back when you sat on the freeway next to a Tyrannosaurus rex.
Ask for discounts. This may seem like a shock, but your auto insurance company and agent or broker are not sitting around daily, thinking, “Hmm, what can I do to lower premiums for the policyholders?” All right, fine, perhaps there are a handful of good ones out there who do ponder this on occasion. However, it isn’t as often as you may want.
To counter this is quite simple. Pick up the phone or shoot an email over to your auto insurance company and ask, “Please list all discounts that are available on my auto insurance policy.”
Don’t ask them what discounts you have, or what you qualify for, or if you have them all. Ask for a complete list of them all. You can then look at the list and see what you may or may not have or qualify for. You may be surprised to see discounts you never knew about.
While you should not expect to be paying the same premium for your auto insurance today as you were when you had rabbit ears on the television, you can have an impact on the rate you have today with some initiative. Remember, it is your auto insurance policy, and you’re paying for it. Be sure you are getting the best bang for your buck.
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Karl Susman is an insurance agency owner, insurance expert witness in state, federal and criminal courts, and radio talk show host. For more than 30 years, Karl has helped consumers understand the complex world of insurance. He provides actionable advice and distills complex insurance concepts into understandable options. He appears regularly in the media, offering commentary and analysis of insurance industry news, and advises lawmakers on legislation, programs and policies.
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