Many factors are contributing to the increase in auto insurance prices, including higher new car prices and rising repair costs. As a result, some people have seen their rates go up by 20% or more in the past year.
Additionally, certain drivers are experiencing even steeper rate hikes due to the susceptibility of their vehicles to theft.
Rebecca Long, a mother with three vehicles, is one of those drivers who is facing a significant increase in her auto insurance costs. She is unsure how she will manage the nearly $900 raise for the next six months.
Long’s rates have soared from $1,700 to $2,600 every six months, with her 2016 Hyundai Sonata experiencing the largest jump. This increase is attributed to the car being classified as high-theft following a TikTok challenge that led to numerous thefts and attempted thefts.
Certain Hyundais and Kias with old-style key ignitions are causing higher premiums at many insurers or even resulting in companies refusing to insure them altogether.
According to a 2024 report from Bankrate, the average car insurance policy now exceeds $2,500 per year, posing a financial burden for families.
Driving record, recent severe weather, and crime rates all play a role in the escalation of insurance costs, according to Divya Sangameshwar from ValuePenguin.
Tips for reducing your premium:
Sangameshwar recommends shopping around for better rates, as most consumers who compare prices find more affordable options. Making small changes, such as inquiring about usage discounts, bundling insurance policies, or adjusting coverage, can help save money.
- Ask about usage discounts or bundle policies
- Consider removing optional coverage
- Raise your deductible
Even with a clean driving history, individuals like Rebecca Long are facing substantial rate increases, emphasizing the need to be proactive and seek out cost-saving opportunities.
For more consumer news and money-saving advice, visit www.dontwasteyourmoney.com
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