The price of car insurance increased 12.7% last year, and premiums are expected to rise another 7.5% in 2025, according to Investopedia.
This year, the average annual cost of car insurance is expected to hit $2,101.
What’s behind the increase? Newer cars feature more expensive parts, from safety equipment to sensors to cameras, making repairs more expensive. Labor costs for those repairs are also on the rise. A rise in risky driving and an increase in litigation related to auto claims are also contributing factors.
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