LOUISVILLE, Ky. (WAVE) – There are often things you can do to save money when you are buying just about everything, even car insurance.
Your rates can change based on the number of claims you make, your driving history, or the car you buy. Even your zip code and your credit history can affect your car insurance rates.
Your personal insurance score is based partially on your credit score in combination with other factors. Get and keep a good credit score, making sure everything is right on that credit score. It can make a difference in the insurance premiums you pay.
According to Consumer Price Index data, the most frequently cited measure of inflation, over the last year car insurance has risen by 20.6% or more.
Christina Roman is a Consumer Education and Advocacy Manager with Experian. Her latest goal is to share the importance of Experian’s Insurance Marketplace, a new way to find and compare auto insurance fast and easy.
“Unfortunately, this is one of those things it’s not a nice to have it,” said Roman, “you have to have it.”
Data from some studies say premiums for full coverage auto insurance rose an average of 26% in 2024.
“It’s mandated that you have auto insurance, and so this is something that consumers are having to figure out how they’re going to manage these increased cost,” explained Roman. “It’s completely free. We’ve actually done a survey and found 20% of consumers would rather sit in hours of traffic than look for a new auto insurance policy.”
Reasons for that cost increase in auto insurance, the Department of Labor’s Consumer Price Index lists increasing car repair costs. The recovering supply chain, which is still healing after Covid-19 also boosts the cost of car insurance. America’s higher healthcare costs can send the price soaring. If you are injured in a car accident without proper health insurance, auto insurance companies must often step up to pay. Climate change is also a factor. In certain areas, insurers have stopped offering coverage altogether because of repeated severe weather events. Other insurers have just increased the cost of the policy to compensate for repeated damage due to weather. A spike in auto thefts and auto accidents have also figured into the price you pay.
“It’s a multitude of factors that have caused it to go up,” stressed Roman. “It’s important that you review those bills as they come in.”
It’s not all unwelcome news. There are some things you can do to make ends meet when it comes to your car insurance.
“Make sure you are shopping for the best possible rates,” said Roman.
Experian’s new, free Insurance Marketplace, can help with that.
“You want to make sure you’re getting a policy that’s comparable not just cheaper than what you currently have,” Roman said.
Look for discounts for students, military members, accident free drivers or drivers who have completed classes or driving courses. Your premium lowers as your deductible rises, so increase your deductible. Bundle your car insurance with another policy from the same company. You may get a discount.
“I know sometimes it may be hard to step away from an insurance carrier you’ve had for a while, but you never know until you get out there and start looking,” explained Roman.
According to Insurify, Maryland has the highest full-coverage car insurance costs in the U.S. Due to payouts from severe storms and wildfires, Insurify predicts California, Missouri, and Minnesota could see car insurance costs increase by more than 50% by the end of this year.
Click here for Experian’s Insurance Marketplace.
Copyright 2024 WAVE. All rights reserved.
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.