Nearly four out of five (78%) of the policyholders who responded to our 2025 Insurance Sentiments Survey said their carrier had increased their auto insurance rates in the past 12 months, with almost a third (32%) saying their rates rose by more than 10%.
Many of those surveyed say inflation is to blame for higher premiums. Although price drives many to shop around for cheaper coverage, relatively few people actually switch car insurance companies.
- About 43% of drivers said inflation caused their car insurance rates to increase during the previous 12 months.
- 78% of drivers said their carrier increased their car insurance rates in the past 12 months.
- Although many drivers shop around for cheaper or better coverage, only 13% switched insurers.
Drivers blame inflation for rising car insurance rates
In March, we surveyed 1,460 drivers nationwide to determine their attitudes about car insurance, inflation, driving habits and more. We asked people whose rates have increased during the past 12 months to identify the reason behind the price hike.
A plurality of respondents (42.7%) blame inflation for the rising rates. But a sizable minority (12.4%) point to insurers themselves, saying the drive to increase profits is behind the higher premiums. Some survey participants (9.2%) say the rising cost of parts and repairs is the culprit, while a few (5.5%) say severe weather is to blame.
More than a quarter of respondents (28.7%) say a perfect storm of all four factors is behind soaring car insurance costs.
Whatever the reason consumers cite, many are fed up. Another poll we conducted in late 2024 found that nearly one-third of policyholders trying to save money on insurance said they had or planned to shop around for cheaper coverage.
Furthermore, studies conducted by market research firm J.D. Power and LexisNexis found that even more people (49% and 45%, respectively) have shopped around for a different carrier.
Why are drivers switching insurers?
Despite their discontent, relatively few consumers are switching insurers, which is surprising. Only 13% of those who responded to our 2025 survey say they have switched carriers in the past 12 months.
Not surprisingly, price is the main reason why people switch insurers. According to our survey, 80.7% of those drivers who switched insurers say they did so because they found cheaper rates. Some other reasons why people switch carriers include:
- I had a bad claims-handling experience with my former insurer: 3.7%
- I had a bad customer service experience with my former insurer: 5.2%
- My former insurer dropped me as a customer or would not renew my policy: 2.6%
Why people say their rates are increasing
Among those surveyed, 78% of drivers said their car insurance rates have increased in the past 12 months. Nearly half (45.8 %) saw rates rise by 5-10%. The table below shows the breakdown of responses.
| Insurance rate increase | Responses |
|---|---|
| 5-10% | 45.82% |
| 11-20% | 21.85% |
| 21-30% | 5.68% |
| 30% or higher | 4.59% |
| No increase | 22% |
Learn more: How do inflation and interest rates affect insurance costs?
What are drivers doing to save money on car insurance?
Surprisingly, most people we surveyed (81.6%) said they haven’t changed or dropped their insurance in the past 12 months due to cost. However, a minority of those surveyed have taken action to save money, such as reducing their coverage or canceling their policy.
The results break down this way as follows.
| Actions taken to save money on insurance | Results |
|---|---|
| Canceled my policy | 5.6% |
| Dropped collision or comprehensive | 2% |
| Increased my deductible | 4.1% |
| Lowered my liability limits | 3.2% |
| Dropped optional coverages (e.g., rental car reimbursement) | 3.5% |
We also asked people if they had ever driven without car insurance – something that is not only illegal in most states but can also lead to higher rates in the future – and why they did so. Less than 1 in 10 of those polled (9.5%) said they’d done so, and many said they couldn’t afford insurance.
Why are car insurance rates still rising?
In 2023 and 2024, average car insurance prices increased by double digits as insurers scrambled to recoup the losses they’d sustained from post-pandemic inflation, a surge in claims, and supply-chain shortages.
This year, the Insurance Information Institute (Triple-I), an industry research and education organization, estimates that car insurance rates will rise nationwide by an average of 7%.
Mark Friedlander, director of communications for the Triple-I, says the increase in 2025 is due to several factors driving car insurance rates for the past several years. For instance, car repairs and replacement parts are projected to rise 3.8% this year.
“Other macro factors that will continue to impact the cost of auto coverage across the U.S. this year include more technologically advanced vehicles costing more to repair; distracted driving, such as texting while driving, leading to more accidents; a continued spike in litigated auto accident claims as billboard attorneys market their services to consumers to file suit following a crash; and rising health care costs to treat accident victims,” he says.
In addition, Friedlander cites a high volume of vehicle thefts (more than 1 million vehicles stolen per year in 2022 and 2023) and a rising trend of uninsured motorists (14% U.S. average based on 2022 industry data).
“Natural disaster losses will also be a factor as we see larger volumes of totaled vehicles from wildfires, hurricanes, floods and other severe weather events,” he says.
And then there are the tariffs that President Trump has levied on nearly every trading partner, including a 25% tariff on automobiles that went into effect April 3. Experts say it will be anywhere from 12 to 18 months before the added costs trickle down to insurance consumers and the actual financial impact can be gauged.
Learn more about U.S. auto insurers’ rates continue to increase
How do you feel about your insurance company?
We also asked drivers how they feel about their auto insurer. This was an open-ended question, with participants able to write their answers in their own words. Many people say they have negative feelings toward their insurer, but we also read several comments from people who were not only pleased with their carrier but had been with them for decades.
Here is a brief selection of some of the responses we received:
- “Insurance is a necessary evil. I think it is expensive but coverage is good.”
- “Ambivalent. I have a decent rate for good coverage, and the company didn’t raise my rates after a minor collision in a parking lot. But I don’t have a dedicated agent who knows me, and this is the first time in my life that’s true.”
- “Been with them for almost 30 years. Don’t plan on going anywhere.”
- “I feel like it is a scam. It is required for driving in my state, but the prices are ridiculous. There should be a break for certain people in income brackets.”
- “I like my insurance company. We have emergency roadside assistance and we recently had to use them to change a tire. They came out and changed it for us.”
- “I’m not too happy about them raising the rates on my current insurance policy, especially since I’ve been a good driver for over 20 years.”
- “It’s a standard insurance company, providing the coverage I need but not a great company that has stellar customer service.”
- “It’s fine. The primary reason we are using it is because we are happy with our homeowners insurance which is bundled with the auto policy.”
- “They just take more money every year and always have a reason for why you’re paying more than you did last year. They will never give money back or lower rates.”
- “They’re fine, but I don’t feel any loyalty to them. They offer good rates, but they’re a little difficult to work with.”
- “I actually really appreciate and like them. They were great with the claim I filed and very responsive and helpful throughout the process.”
Have you filed a claim in the past year?
While price is often a primary concern, many policyholders say customer service is essential. We asked survey participants if they had filed a claim within the past 12 months. The vast majority (85.6%) said no.
However, most (88.2%) of those who filed a claim said they were satisfied with the service they received. We also asked people who filed a claim how long it took to resolve it because fast service is a priority for many drivers.
The results break down as follows.
| How long it took for a claim to be resolved | Results |
|---|---|
| 1 to 2 weeks | 33.2% |
| 3 to 4 weeks | 27% |
| 1 to 2 months | 21.8% |
| 2 to 6 months | 12.3% |
| 6 to 12 months | 2.8% |
| Longer than 12 months | 2.8% |
How can you save on car insurance?
While you can’t control inflation, you can shave some dollars off your insurance premium.
“When looking at inflationary issues, you’re going to get hit from every direction – from buying a car, gas and the insurance for the car,” says Loretta L. Worters, vice president of media relations for the Triple-I. “It’s a good idea when shopping for a vehicle to check with your insurer to see the cost before you buy it.”
Here are other ways to save on car insurance:
- Think twice between leasing or financing a vehicle. You might also think twice before leasing a new car or taking out a loan on your new car: “You’ll need to pay for collision insurance as well as liability, which can significantly increase your premiums,” she says.
- Consider buying a cheaper or safer car.
- Take a defensive driving course. A defensive driving course can also save you money, shaving 5-20% off your car insurance.
- Pay upfront or sign up for autopay. Other discounts include paying your premium upfront or signing up for autopay. Some insurers will bump down your premium by 3% to 5%.
- Bundle your insurance. You can also save by bundling your insurance, such as with homeowners or renters insurance.
- Remember to do one thing: Compare rates by getting quotes from several insurers. This will ensure that you land the most affordable insurance.
Guide: How to get discounts on car insurance
Final thoughts: Car insurance and inflation
As our survey shows, many drivers have seen their car insurance rates increase over the past couple of years – and it’s a safe bet their rates may rise again.
Although inflation has eased, experts say rising prices for car parts and repairs, a high accident rate, heathcare costs and severe weather-related losses are all to blame. And President Trump’s imposition of heavy tariffs on most of the nation’s trading partners will likely have financial ramifications beyond 2025.
This means consumers will need to be even more aggressive in finding ways to save on coverage, whether that’s shopping around for cheaper rates, adjusting coverage levels and deductibles or ferreting out every last discount they qualify for.
Resources & Methodology
Sources
- J.D. Power. “Half of auto insurance customers currently shopping for new policies, J.D. Power finds.” Accessed April 2025.
- LexisNexis. “U.S. insurance demand meter reports continued hot streak with “nuclear” U.S. consumer shopping and “sizzling” new policy growth.” Accessed April 2025.
Methodology
CarInsurance.com commissioned research firm Dynata to conduct an online survey of 1,460 drivers about their speeding habits in March 2025. In 2024, CarInsurance.com commissioned Quadrant Information Services to obtain rates from up to six major insurers in 34,558 ZIP codes for a 40-year-old driver of a 2021 Honda Accord LX with good credit, full coverage, and a $500 deductible; the increases shown are an average from the base rate in 2024. The editors found the percentage and amount of increase for 11 to 29 mph over the speed limit.
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