Following the significant increase in insurance costs, this expert provides four strategies to help you reduce your car insurance expenses in 2025.
ValuePenguin.com, a LendingTree subsidiary focused on the state of auto insurance, projects in its 2025 research that the average annual cost of car insurance will reach an all-time high of $2,101 by that year. The study indicates that by 2025, U.S. drivers might see some relief as auto insurance companies moderate their rate increases. While premiums have been rising for eight consecutive years, drivers can expect smaller overall increases compared to last year’s significant 16.5% hike.
Experts Share Four Tips to Save on Car Insurance in 2025
ValuePenguin.com has outlined the following advice for reducing car insurance costs in 2025:
1. Compare Insurance Quotes
Since different insurers raise rates at varying levels, comparing quotes during each renewal period remains one of the most effective ways to save on auto insurance in 2025. Drivers who shop around could potentially save up to $2,436 annually. It’s recommended to compare prices from at least five insurers, and even more if recent incidents may have increased your rates.
2. Take Advantage of Discounts
Insurance providers offer various discounts to help lower premiums. Combining multiple vehicles under one policy can save up to 25%, while bundling home and auto insurance policies can reduce rates by 18%. Safe driving habits, such as maintaining an accident-free record for over five years, completing defensive driving courses, or having low mileage, can also lead to discounts ranging from 10% to 20%.
3. Adjust Your Coverage
While liability-only coverage is 153% cheaper than full coverage, its limited protection makes it a risky choice. To cut costs without compromising too much coverage, drivers can consider increasing deductibles or eliminating optional coverages like roadside assistance.
4. Improve Your Credit Score
Insurers use credit history to determine premiums in nearly all states. Those with poor credit scores are 19% more likely to struggle financially with their insurance payments and may pay up to 88% more for coverage. Boosting your credit score is an excellent way to lower your auto insurance costs in 2025.
Challenges in Affording Health Insurance Deductibles
A recent Policygenius survey highlights that many Americans face difficulties paying their health insurance deductibles. According to the findings, 28% of insured individuals would be unable to pay their deductible in full during a medical emergency. Even among those earning $80,000 or more annually, 18% consider themselves “underinsured,” as they would need to borrow money or rely heavily on credit to cover their deductibles. Shockingly, 45% of insured Americans avoid seeking medical care due to concerns about affording their insurance costs.
This situation persists despite the passage of the Affordable Care Act over a decade ago, which aimed to provide millions with access to preventive services at no cost. Many still struggle to afford essential medical treatment. Key insights from the Policygenius Health Insurance Survey include:
- 42% of insured Americans visiting mental health providers have had claims denied by their health insurance.
- 25% of insured individuals are uncertain what they would do if they lost coverage, with 9% stating they would go uninsured.
- 15% lack confidence in enrolling in a new plan, while 63% would require some assistance.
- Among current Medicaid beneficiaries, 17% fear being left without coverage, but 32% believe they could re-enroll if necessary.
These findings underscore ongoing challenges in accessing affordable healthcare despite legislative efforts to improve accessibility.
