Why your car insurance hates you

October 31, 2025

By Kim Komando

My car insurance jumped 32%. I didn’t crash. I didn’t speed. I simply exist.

Sound familiar? Full-coverage car insurance rates rose 25% on average last year, and in some states, it was closer to 40%. Overall, rates are up 55% since 2022.

📈 Why rates keep rising

It’s the tech. Modern cars are rolling computers packed with cameras, sensors, software and expensive materials. That makes them safer but wildly more expensive to repair.

• More parts = more money. When Toyota redesigned the Camry, the front bumper went from 18 parts to 43, mostly for driver-assist features. Even a minor front-end bump means, aside from paint, you’re recalibrating radar and cameras. A basic fender bender costs about 45% more to fix than a year ago.

• LED headlights are pricey. They’re brighter, more efficient and last longer than halogen, but they cost up to 5x more to replace. If you drive a newer car with fancy headlights, a parking lot ding is a $1,000+ bill.

• Aluminum is great until it isn’t. More automakers are using aluminum to make cars lighter. It also crumples better in crashes, protecting passengers. But it’s harder to repair, requires special tools and costs significantly more than steel.
• EVs? Even trickier. EVs take 40% longer to repair and cost about $500 more in labor per job. Not to mention there’s a nationwide shortage of EV-certified technicians.

Add in supply chain issues, inflation and the fact that 60% of car parts come from China, and any new tariff could make things even worse.

🤑 What you can do about it

I’m always hunting for ways to save and sharing the best ones with you:

• Raise your deductible. Lower premiums, but be ready to pay more out of pocket.
• Drop full coverage if your car’s older and paid off. Just keep liability.
• Get discounts. For safe driving, low mileage, anti-theft devices, bundling and more.
• Enroll in autopay, pay in full or go paperless. Easy discounts.
• Improve your credit score. In many states, it affects your rate.
• Take a defensive driving course. Knock off 5%–15% many times.
• Shop around. Don’t stay loyal to an insurer that isn’t saving you money.

Pro tip: Tell ChatGPT about your car, mileage, insurance rates, and ask it to tell you who has the cheapest rates. I did that, and it worked for me!

👣 Oh, the tracker question

“Should I install a driving tracker to get a discount?” 

Those things monitor everything, speed, braking, even how hard you turn. And yes, they absolutely sell that data. Personally? Not worth the discount. But talk to your agent and see what the trade-off looks like for you.

🍝 Why does pasta pay more for car insurance? Because it can’t drive without getting al dente.