New Study Reveals Over 20% Rise in US Car Insurance Costs

A new CheapInsurance.com study reveals a 20%+ surge in US car insurance costs since 2020, impacting consumers across income levels; discover key factors driving the increase and learn how to save money with proactive comparison shopping and policy adjustments.

LOS ANGELES, May 21, 2025 /PRNewswire/ -- Amidst a changing economy, CheapInsurance.com, a trusted insurance rate comparison platform, has published a report analyzing the nationwide surge in car insurance costs.  This report details regional price fluctuations, consumer opinions, and the primary factors influencing current rates.  The company urges consumers to regularly review their insurance policies in light of these economic shifts.

Key findings reveal a complex and evolving insurance market

• Since 2020, car insurance premiums have increased by more than 20% : This surge is attributed to a confluence of factors, including a rise in accidents, escalating repair costs, and a greater incidence of vehicle theft. As detailed in a CheapInsurance.com article " Why Your Car Insurance Rates Aren't Going Down ," inflation, labor shortages, and the incorporation of advanced vehicle technology have further exacerbated the problem.
• The expansion of coverage offered by car insurance policies has also contributed to higher costs : Modern policies frequently include features such as telematics-based pricing and comprehensive climate-related damage coverage, exceeding the scope of policies from five years prior. This enhanced protection, however, comes at a premium. In certain areas, the annual cost of full coverage insurance in 2024 surpassed $2,000, with Louisiana exhibiting higher average prices than New York.
• Consumer Sentiment Varies by Income : Lower-income households are feeling the burden most, with many reporting they now shop for new quotes every 6–12 months—up from once every 2–3 years pre-pandemic. While regular comparison shopping is a crucial tactic for saving, lower-income households feel forced to do it more regularly.
• Affordable Options Still Exist : Even with rate hikes, CheapInsurance.com's recent market data shows that competitive policies remain available—especially for drivers who compare quotes, explore discounts, and adjust coverage levels to match their risk profile.

"Car insurance isn't getting cheaper—but being informed can help consumers beat the trend," said Fausto Bucheli, Founder & President at CheapInsurance.com. "We've found that most drivers are overpaying simply because they haven't re-quoted their policy in over a year. With rising costs, it's more important than ever to be proactive."

Consumers Can Save Money - With a Little Effort

Even with rate hikes, CheapInsurance.com's recent market data shows that competitive policies remain available. Drivers willing to do a bit of work can identify the factors raising their insurance costs and take practical steps, from comparison shopping quotes and applying for discounts to adjusting their coverage levels and even negotiating with their insurer, can successfully lower their premiums.

For a comprehensive analysis of car insurance quotes and to utilize helpful resources, comparison tools, and expert advice, visit CheapInsurance.com . Their report, " How Often Should You Get a Car Insurance Quote? ", offers valuable insights.

About CheapInsurance.com Founded in 1974, CheapInsurance.com is a trusted insurance solutions broker dedicated to helping individuals and families across the United States find affordable, high-quality insurance coverage. With nearly five decades of experience, the company partners with top-rated national insurers to offer a wide array of products, including auto, SR-22, motorcycle, home, renters, life, health, RV, and boat insurance. CheapInsurance.com simplifies the insurance shopping process through its user-friendly online platform, providing instant quotes tailored to each customer's unique needs. By combining unbeatable affordability with reliable coverage options, the company ensures that customers can secure the protection they need without compromising on quality. Headquartered in Chino Hills, California, CheapInsurance.com is committed to delivering exceptional service and value to its clients nationwide. For more information, visit www.cheapinsurance.com or contact [email protected].

SOURCE Cheapinsurance.com