LOUISVILLE, Ky. (WDRB) — The average auto insurance policy in 2025 is expected to hit $2,100 a year, causing car owners to start looking for other options.
Premiums are also predicted to rise by an average of 7.5%, less than last year’s 15% increase, but still up again.
So what’s the reason behind the rising costs? Medicals bills, if you are in an accident, can take a toll on your rate. Also, the rising price of car parts and repairs in general.
Car parts are up almost 20% the past two years. For 2025, the threats of tariffs could send those prices even higher.
If you’re looking to keep your rate as low as possible, consider bundling your car and home policy. If you have an older car, liability only coverage is an option to get the best rate possible.
You can also raise your deductible, or shop around with other companies.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.