It should go without saying that car insurance is one of the most aggravating purchases you can shop around for in your adult life. With so many competitors like Geico, Liberty, and Progressive all in your face with television commercials and billboards, you might think this is the last great decision you will make in your life.
In addition to the whole decision-making process of one company or another, one Redditor informs everyone through a post in r/personalfinance that they should be ready for sticker shock. New quotes are almost double what the Redditor pays now, and they are rightfully wondering if this is the new normal.
It should go without saying that this is one of the most frustrating situations related to vehicle ownership, as insurance costs continue to rise while income doesn’t.
The Current Price
Looking at their 2015 Chrysler 200 without any accidents and as the second owner, the Redditor wonders what is going on with some new quotes. As a driver without any history of an accident or speeding ticket in the last 11 years (or any other vehicle ticket), they are shocked at what they learn as they shop around for new quotes.
The 29-year-old Redditor pays around $200 monthly with “full coverage” on an Allstate plan. However, when trying to find a new plan, they learn that future pricing will likely run them between $360 and $480 monthly, with the lowest and highest rates surprisingly coming from two different Progressive agents.
Drawing from personal experience, I can’t imagine the last time I saw an absolute reduction in car insurance. Even with the purchase of a new car, which historically has lowered prices for me, it isn’t something I see anymore.
Why Is Car Insurance Pricing Increasing?
A January report from LendingTree states that car insurance will increase 7.5% on average in 2025. This comes off a 2024 average increase of 16.5%, so it’s pretty telling that car insurance pricing isn’t likely to go down, and these numbers help explain what the Redditor is seeing.
Surprisingly, electric vehicles are becoming less expensive to insure, but are still 23% more expensive than gasoline-powered cars. Unsurprisingly, some very specific factors, such as traffic tickets, changing credit scores, changes in coverage, etc., are driving up insurance costs across the board.
Ultimately, external factors are causing this increase, including broken supply chains. Disrupted global supply chains for auto parts have increased vehicle repair costs. Inflation is also a factor, as auto repair costs have become more expensive.
Some of the Redditors in the comments also point out that the original poster lives in Michigan, which has some of the highest insurance costs in the country.
Reducing Insurance Costs
As this Redditor undoubtedly wants to reduce their overall costs, there are a few options, though they won’t apply to everyone. Aside from comparing insurance quotes, which this Redditor is already doing, they should look at discount opportunities, like bundling home and auto policies. You can also take a defensive driving course, offering a 10% discount for drivers with some insurance companies.
Separately, if you can make an effort to improve your credit score, this can affect your overall costs. According to the LendingTree study, Americans with poor credit can pay as much as 88% more for car insurance than those with strong credit reports. Comments on this post reflect this credit reality, as many individuals note that improving their scores helped reduce their long-term insurance costs.
However, Reddit comments also flag that paying full coverage on a 10-year car, presumably with high miles, is another reason. As things on this vehicle are more likely to break than on a new car, the insurance company is increasing its price to compensate for the reality that the driver will have an issue with the vehicle in the near future.
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