--- title: As Car Insurance Prices Soar, More Drivers Look for New Policies description: Car insurance premium prices are rising faster than inflation, and more drivers are shopping around for new policies to save money. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 598 covers: - Insurance - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Insurance - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2023-05-18T19:16:01.000Z' modified: '2024-02-29T16:22:08.000Z' section: Insurance tags: - News word_count: 372 canonical: https://money.com/car-insurance-prices-switch-new-policy/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Man in his car looking at his phone](https://img.money.com/2023/05/News-Auto-Insurance-1.jpg) [Car insurance](https://money.com/best-auto-insurance/) premiums are soaring, and steep rate increases are motivating people to [shop around](https://money.com/shop-around-cheap-car-insurance/) in search of cheaper policies. The increase in auto insurance rates is contributing to inflation in the U.S. economy, according to the [latest consumer price index inflation report](https://money.com/inflation-rate-falls-whats-cheaper/). Motor vehicle insurance prices increased by 1.4% in April and are up 15.5% in the past year, far exceeding the overall inflation rate of 4.9%. A third of Americans say their car insurance went up by at least 10% in the past year, according to a [report from CarInsurance.com](https://www.carinsurance.com/drivers-switching-car-insurance-companies-as-inflation-rises/), which surveyed thousands of drivers. Nearly half of drivers, 49%, say they shopped around for auto insurance in the past year, an indication that people are dissatisfied with rising prices. The trend will likely continue in the months ahead with insurance rates likely to continue rising, experts say. ## Why car insurance rates are rising Insurance companies are raising premiums as they face higher costs for repairing and replacing vehicles. - [New car prices](https://money.com/average-new-car-price-below-msrp/) and [vehicle repairs](https://money.com/things-getting-more-expensive-inflation/) are astronomically more expensive compared to a few years ago, and other costs that car insurance companies have to cover like medical expenses have gone up too. - [Higher numbers of serious accidents](https://money.com/why-auto-insurance-prices-higher/) are also to blame for rising insurance costs. Fatalities from vehicle accidents are up 17.7% compared to 2019, according to a [recent government report](https://www.nhtsa.gov/press-releases/traffic-crash-death-estimates-2022) in which Transportation Secretary Pete Buttigieg said there is “a national crisis of traffic deaths on our roadways.” - According to CarInsurance.com, impaired and distracted driving, speeding and other bad decisions on the road are causing higher accident numbers. ## How to switch car insurance If your premiums shoot up, it could be time to consider [switching car insurance](https://money.com/how-to-switch-car-insurance/). Here are some tips for finding a better deal: - When switching policies, it’s smart to request quotes from at least three insurers so you can compare prices and coverage quality. - To avoid cancellation fees, you may want to switch insurance when your current policy comes to an end. (Auto insurance policies often come up for renewal every six months.) - Drivers have different insurance needs, but you can use our guide on [how to buy car insurance](https://money.com/how-to-buy-car-insurance/) for more information on the best type of policy for your situation. ## **More on Car Insurance** | | | --- | | **Money’s Top Picks** [8 Best Car Insurance Companies of 2024](https://money.com/best-auto-insurance/) [6 Best Commercial Auto Insurance Companies](https://money.com/best-commercial-auto-insurance-companies/) [7 Best Car Insurance Companies in Florida](https://money.com/best-car-insurance-florida/) **Car Insurance Reviews** [CURE Auto Insurance Review](https://money.com/cure-auto-insurance-review/) [AAA Auto Insurance Review](https://money.com/aaa-auto-insurance-review/) [Lemonade Car Insurance Review](https://money.com/lemonade-car-insurance-review/) **Learn More** [How to Lower Car Insurance Premiums](https://money.com/how-to-lower-car-insurance-premiums/) [Tips for First-Time Car Insurance Buyers](https://money.com/tips-for-first-time-car-insurance-buyers/) [How Does Car Insurance Work?](https://money.com/how-does-car-insurance-work/) | ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/car-insurance-prices-switch-new-policy/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Insurance", "item": "https://money.com/insurance/" }, { "@type": "ListItem", "position": 3, "name": "Car Insurance", "item": "https://money.com/car-insurance/" }, { "@type": "ListItem", "position": 4, "name": "As Car Insurance Prices Soar, More Drivers Look for New Policies" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/car-insurance-prices-switch-new-policy/#webpage", "url": "https://money.com/car-insurance-prices-switch-new-policy/", "name": "As Car Insurance Prices Soar, More Drivers Look for New Policies", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2023-05-18T19:16:01.000Z", "mainEntity": { "@id": "https://money.com/car-insurance-prices-switch-new-policy/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/car-insurance-prices-switch-new-policy/#breadcrumb" }, "dateModified": "2024-02-29T16:22:08.000Z" }, { "@type": "NewsArticle", "headline": "As Car Insurance Prices Soar, More Drivers Look for New Policies", "articleSection": "Insurance", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/05/News-Auto-Insurance-1.jpg", "width": 2880, "height": 1920, "caption": "News-Auto-Insurance" } ], "author": [ { "@type": "Person", "name": "Pete Grieve", "url": "https://money.com/author/pete-grieve/", "@id": "https://money.com/author/pete-grieve/#author", "description": "Pete Grieve is a personal finance reporter. 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