Pay Less When Rates are Rising

Owning a car is getting more expensive. According to a new report, the average cost of auto insurance is expected to rise to nearly $2,500 by the end of the year, representing a significant increase from last year. 

Insurance Costs are Up

The report estimated that the average cost of insurance will hit $2,469 by the end of 2025. If that’s correct, it will be a 22 percent jump compared to the end of last year.

Why Have Costs Increased?

The primary reason for the increase in premiums is the rising cost of manufacturing and repairing vehicles. Insurance companies are taking that into account and passing along higher costs to the consumer. Other factors in the rising costs of auto insurance are the increase in extreme weather events and an uptick in dangerous driving.

3 Tips for Lowering Your Car Insurance Bill

Now that you know how costly auto insurance can be, here are some ways to lower it:

• Shop around for the best prices. There is no need to stick with an insurance company that is overcharging you. This may take some work, but in the end, it can be worth your while.
• Try a usage-based policy. These policies set your premiums according to how you drive. The safer you drive, the lower your rates.
• Bundle things together. Most of the time, if you bundle your auto insurance with other insurance policies, you will save some cash.

Do One Thing: Get three quotes from different auto insurance companies. Pick the one that best matches your driving habits and budget restraints. Bundle too!