Auto Insurance Rate Crisis in 2025
The Zebra Insurance company has published their 2025 insurance rate report and predictions. It seems auto insurance rates jumped substantially in 2023 and 2024. Their 2025 auto insurance rate projections are reduced which is wonderful for today’s cash strapped vehicle owners.
Affordable auto insurance is an increasing problem for you and most Americans. Solutions are needed, and the best way to promote lower rates is via insurance shopping. If lowest price wins, it reconditions insurance companies to compete on low prices.
But hold on, we’re not done with natural weather events and inflation, along with trade wars and supply chain problems. There are plenty of premium price-boosting factors that could ratchet up American auto insurance rates this year. The rising US dollar, auto-theft, natural disasters, inflation, and more will pressure premiums upward. Drivers shouldn’t wait to shop for the lowest insurance quotes.
Auto Insurance Comparison Sites
This plague of rising auto rates will push more Americans to use auto insurance comparison sites. Getting many more quotes will be part of Americans shopping rituals. And why not? This is the path to cutting insurance costs.
The assumption by some economists about inflation may be unfounded. A growing economy combined with trade wars means more dollars chasing fewer goods. The recent major artic weather event across the nation resulted in a wave of car accidents in the south and those costs will come through to you. We still have 8 more weeks of winter as the La Ninja weather trend builds and delivers cold air.
From the Zebra Insurance Report
Insurance company Lending Tree says that after an average rate increase of 16.5% in 2024 and 12% in 2023, auto policy insurers are forecast to raise their rates 7.5% on average in 2025 (Value Penguin by LendingTree data).
They say policy holders with American Family, All State and Liberty Mutual will suffer the largest increases. Drivers in New Jersey, Washington and California will see their auto insurance premiums rise by over 15% this year. Geico, Progressive and USAA are expected to have the lowest increases in premiums.
Those drivers with DUI charges and collision claims will see the largest increase in premiums.
Maine drivers will pay an average of just $103 per month, and nearby New Hampshire and Vermont will see a very low $107 per month for their auto policies.
Drivers with traffic violations will want to drive more responsibly. They’ll see their premiums jump more than 50% on average in 2025, with North Carolina drivers suffer a 150+% increase. The losses of the hurricane can put result in premiums being raised for seemingly unrelated issues.
Even if you live in wide open South Dakota, your premiums are going to rise which is why shopping for lower car and truck insurance is just plain wise. Paying $2000 to $4000 a month for auto insurance along with much more for home insurance is too much to bear.
Shop Hard to Find Lower Premiums
With the rise in premiums, car owners look to drop coverage such as at-fault collision. Yet the cost of replacing your car or repairing out of your pocket could be uncomfortable. If you’re using your car for work and commuting, dropping that coverage is unwise. Reducing your deductible’s is also questionable practice given it won’t drop your rates much. Shopping for the very best rates is the best route to reduction.
As you saw in the list of insurer average rates, some insurance companies offer better policies for some drivers. Progressive and USAA may not have a policy for you, because they are discriminating in approving policies for AAA+ drivers.
If you’re a bad driver, your best option is to drive lower prices used car without collision coverage for yourself. Swallow your pride and buy that old beater! Otherwise, you might be looking at policies in the range of $5000 yearly.
Read more about lowest auto insurance rates and consider switching insurance providers.