So, you think your car insurance bill is higher than you remember? You are digging through past bills to make sure you are not crazy. No, you're not imagining it, and you’re among a lot of people wondering why?

We did our research and found the national average cost of full-coverage car insurance has gone up to $2,320 per year, according to Experian’s 2025 auto insurance report (Experian, 2025). That’s an increase of nearly 25% in the last two years, based on reports from Insurify and J.D. Power (Insurify, 2024) (J.D. Power, 2024).

These increases are driven by repair-cost increases, expensive ADAS (advanced driver-assistance systems), telematics trends (GPS, sensors, and wireless networks to collect, transmit, and analyze data), and severe weather claims. Yeah, weather claims. Who knew? But here's the truth most drivers never hear:

Your rate is not fixed. You can lower your car insurance.

Car insurance premiums are actually fluid, and many drivers are overpaying without realizing it and never do anything to change it. Yep, those insurance companies are ripping us off again. Surprise!

We can give you an actionable plan to reduce your auto insurance rate using real strategies that you can accomplish on your own. However, if you want the easiest path, Pine AI can do the insurance shopping, discount checks, and switching for you. That’s one of the many things we do.

Why Your Car Insurance Is Higher and By How Much

Insurance premiums have risen nationwide 55% since February 2020, with most of that rise occurring between 2022 and 2024. I’m sure your insurance company would claim many things, but here’s what’s driving the spike:

Even if you have a perfect driving record, these factors impact your premium, and not for the better. I actually looked for information, and it is true: car insurance companies are paying more for claims every year. But I still ask, if I don’t have accidents and I don’t have an expensive car, why are my rates going up? Am I suffering for the masses? What can I do?

Why Did My Car Insurance Increase From 2024?

From what we’ve found, there are several contributors to year-over-year price spikes::

• Repair costs up 20–40% since 2022. Modern cars have expensive gadgets that are expensive to repair.
• Higher vehicle prices, especially EVs and SUVs, because everyone has to have one.
• Insurers re-filing rates to remain profitable, as if they weren’t already.
• More total-loss claims A “total-loss” is subjective in most cases, but gets the car owner a new car.
• Increase in extreme weather. Global warming, global cooling, hail, ice, lightning strikes and more.
• Rising medical costs. Generally due to other insurance hikes, like medical.

When you look at these factors, it seems many insured are taking as much advantage as the insurers. These carrier-wide adjustments hit almost every driver, even those with perfect records. So how can you catch a break?

➤ How Pine AI Can Lower Your Car Insurance

“Ask Pine to call your insurer, verify all eligible discounts (bundle, low-mileage, defensive driving, multi-car), enroll you in telematics if you want, and request a price review — with follow-ups handled for you.”
— Stanley Wei, CEO of Pine

5 Steps to Lowering Your Car Insurance

These are the highest-impact ways we’ve found to lower your insurance premium, backed by expert sources.

Step 1: Shop Smart (Every 6–12 Months)

Refinancing is still a viable strategy, if you follow the numbers.

Compare 3–5 like-for-like quotes

We found that rate dispersion is unusually wide, meaning insurers vary more than ever in their pricing with no rhyme or reason. Everyone is increasing in pricing, but some more than others. Comparing multiple quotes is one of the best and fastest ways to find cheaper car insurance. Yeah, it takes a minute, but it’s usually worth it.

Align coverages when comparing

Always match:

• Liability limits
• Deductibles
• Collision & comprehensive
• Rental coverage. Some don’t even offer this unless you ask.
• UM/UIM coverage (a driver who has no auto insurance (uninsured motorist) or not enough insurance (underinsured motorist)).

A “cheap” quote may simply be cutting key protections, so don’t fall for it. This is the moment you need to pay attention and feel confident in what you are getting for the cost.

Shop after major life events

I personally moved from the city to the country after taking a remote position during COVID. I never considered that it could lower my rate until a friend shared. Wow! What a difference.. We recommend re-shopping your policy after:

• Moving. Every city, county and state has different levels of risk by insurance carriers. This is what they base your rate on.
• Buying a new vehicle, whether new or used. Your rate will change.
• Marriage or divorce. Married a good driver or left a bad one? It can really make a difference in your rates.
• Adding a teen driver. This will always raise your rate due to the added risk with inexperience. Try to keep it minimal. (And see the good student discount below).
• Job changes. When people went remote and worked from home, no one knew that driving less would lower your rate. Now you do.
• An accident. This will usually raise your rate. The best time to shop around is while you are still in the middle of a claim.

Life changes often shift your risk profile, for better or worse. It’s the best time to shop around.

Step 2: Optimize Coverage (Don’t Underinsure)

Raise your deductible (if you have savings and a good driving history)

Raising your deductible is a great option. If you are a good driver, with a good history and have confidence it will remain that way, increase your deductible and decrease your monthly. One, increasing a deductible from $200 to $500 may reduce your premium up to 30%. And two, $1,000 deductible can reduce costs 40%+. So if you have a great driving record, free of accidents, why not raise it and save for the long run?

Rethink collision/comprehensive on older cars

We also suggest dropping these if your car’s value is less than 10× the annual premium of those coverages. I mean, if you have an older car that has less value, why pay more year after year than the car is worth?

Don't skimp on liability

This is one thing we really agree on with all the Insurance Institute experts. Liability insurance is cheap but critical. III warns that state minimums often leave drivers incredibly underinsured. If you are at fault in an accident, large medical and legal bills can totally crush any savings you might have had in paying less up front.

Step 3: Stack Legit Discounts (Bundle, Multi-Car, Defensive Driving)

Bundle home + auto insurance

Did you know that bundling can save you around 14% on average, sometimes more. If you have home insurance and car insurance for one or more cars, shop around for carriers that will put them all together. Note to self though, make sure the bundled price you get beats having two separate carriers or two separate policies.

Ask for all discounts you actually qualify for

Here are some common savings opportunities we found (AARP, 2024):

• Multi-car. Married or have kids with cars? One policy is better.
• Good student. For people with kids or college students paying their own insurance.
• Anti-theft. Tech in the vehicle or a service that tracks your car if stolen.
• Defensive driving course. Take one even if you haven’t gotten a ticket. Send the certificate of completion to your carrier and ask for the discount.
• Low-mileage. Work from home and only go out to the grocery store? Pay less.
• Autopay. If a company knows it gets paid on time every time via ACH or a credit card, you can often catch a break.
• Pay-in-full instead of monthly. If you can pay for the year up front, you often get a discount.
• Affiliation or employer discounts. Retired military, AARP and other affiliations can make a difference to your rate. Ask.

You only get discounts you ask for. No one offers them up.

If you want the simplest possible experience, Pine AI automates the entire process, including renewal management. I mean, we do it for you.

Step 4: Drive How You Pay (Telematics & Low-Mileage Options)

Usage-based insurance (UBI)

We found that:

• Safe drivers can save money. Don’t have an accident, rates go down - simple.
• All carriers increase premiums for risky driving, tickets and accidents. A speeding ticket leads to an average increase of about $435 per year and an at-fault accident leads to an average increase of $872 per year. (US News, 2025)
• Only 41% of drivers feel comfortable sharing data that was not collected by an authority with these services. So most don’t take advantage of the possible savings.

Low-mileage or pay-per-mile insurance

“Pay-per-mile insurance” is a form of usage-based insurance (UBI) that is ideal for drivers who log low annual mileage, while a "low-mileage discount" is a potential saving on a traditional policy. The first one directly ties your premium to the miles you drive, while the second offers a percentage off a standard rate if you drive below a certain threshold. These programs are ideal for:

• Remote workers barely drive at all. I know because I am one.
• Urban drivers, meaning driving to work and errands are all low mileage drives.
• Households with low-mileage vehicles. It doesn’t matter how old. If you don’t drive much make sure your insurance company knows.

If you drive under ~7,500 miles per year, you can often secure cheaper auto insurance through mileage-based programs. If that’s you, step up and ask.

Step 5: Fix Rating Factors You Control

Improve your credit score (in states where allowed)

Improving your credit score can help reduce your premium in many states. The reasoning is, if you have a good credit score, you likely will pay for small claims yourself instead of filing it with the insurance company. So basically, they believe if you have good credit, they will also save in the long run. NAIC states that credit scoring is restricted or banned in (meaning these states CANNOT use your credit score against you or for you to affect your premium):

• California
• Hawaii
• Massachusetts
• Maryland
• Michigan

In other states, improving credit can actually reduce your auto insurance rate. You should check into it, or have us do it for you.

Avoid minor claims

Small claims often cost more long-term because they trigger premium increases. It is generally recommended to pay out-of-pocket for a small claim, if possible. Don’t contact the insurance company at all. Just pay for the damage yourself.

Research insurance prices before buying a car

Certain models, especially all those cool newer EVs and high-tech cars, have surprisingly high premiums. We think it’s most likely because any repair on a high tech car is way higher. Always compare auto insurance quotes before purchasing a vehicle. Simple common sense.

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FAQ

How often should I shop for car insurance?
Every 6–12 months or after major life events.

Will shopping hurt my credit score?
No. Insurance quotes use soft inquiries.

What’s the easiest discount to get?
Autopay, pay-in-full, and bundling.

Is usage-based insurance worth it?
Yes, if you’re a safe driver and comfortable sharing data.

Can I lower my rate after a ticket or accident?
Sometimes. Consider switching insurers or taking a defensive driving course.

Do I need full coverage?
Full coverage = liability + collision + comprehensive.
You may not need collision/comprehensive on older vehicles.

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Sources & Citations

Experian (2025)
https://www.experian.com/blogs/ask-experian/average-cost-car-insurance/ Insurify (2024)
https://insurify.com/car-insurance/rate-increases/

J.D. Power (2024)
https://www.jdpower.com/business/press-releases/2024-us-auto-insurance-study

US News & World Report (2025)
https://www.usnews.com/insurance/auto/why-are-car-insurance-rates-going-up
https://www.usnews.com/insurance/auto/car-insurance-increase-accident#:~:text=clean%20driving%20record...

Insurance Information Institute (III, 2024)
https://www.iii.org/article/nine-ways-to-lower-your-auto-insurance-costs

AARP (2024)
https://www.aarp.org/money/personal-finance/save-on-auto-insurance/

Bankrate (2024)
https://www.bankrate.com/insurance/car/why-is-my-car-insurance-so-high/

Forbes (2024)
https://www.forbes.com/advisor/homeowners-insurance/bundle-and-save/

NAIC (2024)
https://content.naic.org

CNBC (2025)
https://www.cnbc.com/select/credit-score-save-on-car-insurance/

Zebra (2024)
https://www.thezebra.com/resources/car-insurance/when-to-change-insurance-after-event/