CHARLOTTE — Rising car insurance rates may have you shopping around for a better deal. By one estimate, the average cost for full coverage went up by over 40% from 2021 to 2025.
Consumer advisor Clark Howard says the auto insurance industry can make it hard for you to compare from one company to another, but the more you shop around, the more relief you could see on your bills.
First, carefully consider the type of car you buy. Howard said electric cars can save you money on gas and routine maintenance, but they cost more to repair leading to higher premiums.
According to Insurify, full auto coverage for a Tesla Model 3 costs about $300 a month. For a Ford Explorer, full coverage will run you $168 a month and $138 a month for a Subaru Crosstrek.
Comparison shopping is crucial, but if you find searching for car insurance to be too much of a hassle, independent insurance brokers can search across multiple insurers to find what would best suit your needs.
Elaine Jones is the owner of Atlanta Premier Insurance Agency. She says if you’re willing to take on more financial risk, raising your deductible could help you fight back against rising costs.
And check your credit report for errors because insurers may use this to determine how likely you are to file a claim.
Another tip: a lot of the sites you see online that are supposedly for comparison shopping are actually fake and designed to push you to one company. Call each company individually or go to their websites to get a quote for what you need.
If you do plan to shop around for better rates, drivers in the Carolinas need to be aware of what’s called a “short rate premium.” It’s required by law and allows insurance companies to bill you for canceling your policy early. That’s because if companies cover claims for people who stop paying, everyone’s rates go up to cover the difference.
Watch the video at the top of the webpage for more tips from Clark Howard >>>