Why is My Insurance So High?
Have you looked at your car or home insurance bill lately? If your jaw hit the floor, you’re not alone. Prices are rising fast—and not just for you. So what’s going on, and more importantly, what can you do about it?
Let’s break down what’s driving your insurance rates through the roof—and how to fight back.
Why Insurance Rates Are Skyrocketing
Between 2020 and 2023, home insurance jumped 33% and auto insurance rose 24%—and prices kept climbing in 20241 . Why? A few big reasons:
- More claims from natural disasters, severe weather and reckless driving
- Inflation and supply chain issues pushing up the cost of repairs
- Insurance companies playing catchup after years of financial losses
Put simply: It costs more to insure people and property these days—and those costs get passed down to you.
Why Your Car Insurance Is So High
Your premium isn’t random. It’s based on market trends and your personal details. Here’s what impacts your car insurance costs:
Personal Factors
- Age and Gender: Under 25 or over 75? You’re considered higher risk.
- Location: Urban areas mean more traffic, crime and claims, and higher rates.
- Credit Score: Below 600? You’ll likely pay more (unless you live in California, Hawaii, or Massachusetts).
- Job: If you’re on the road a lot (traveling nurses, truck drivers), insurers factor that in.
- Driving Record: Speeding tickets and DUIs drive rates way up.
- Claim History: Too many claims? Insurance companies take notice.
- Lapses in Coverage: Going without insurance can make you look risky.
Vehicle and Usage
- Car Value: The pricier the car, the pricier the insurance.
- Safety Features: Better safety ratings = better premiums.
- Your Commute: Long commutes or dangerous roads increase your risk profile.
Why Your Homeowners Insurance Is So High
Your home insurance premium is feeling the heat too. Here’s why:
- Natural disasters (hurricanes, wildfires, tornadoes) are more frequent and destructive.
- More homes are being built in high-risk areas—meaning more storm damage to insure.
- Rebuilding costs are up thanks to labor shortages and expensive materials.
Even if your home wasn’t damaged, the industry-wide cost increase means you’re still footing part of the bill.
How to Lower Your Insurance Premiums
Feeling the squeeze? Here’s how to save:
1. Raise Your Deductible
If you’ve got at least $1,000 in your savings account to cover your deductible, raising it can cut your monthly premium.
2. Cut Unnecessary Coverage
Stick with the must-haves: liability, comprehensive, and collision. Drop extras like GAP or PIP if your state doesn’t require them.
3. Ask About Discounts
Good grades, clean driving records, burglar alarms—these can all score you savings.
4. Update Life Changes
Got married or moved? That can lower your rates. Don’t forget to update your policies.
5. Bundle (But Compare!)
Bundling can save you money—but not always. Compare bundles versus separate policies to be sure.
6. Shop Quotes Regularly
Don’t just stick with what you’ve always had. You might be overpaying by hundreds.
Work With a Pro Who Shops for You
The smartest move you can make? Talk to an independent insurance pro—not a captive agent stuck with one company.
RamseyTrusted® insurance pros are vetted, mission-aligned, and shop multiple carriers to find you the best deal. No spam. No nonsense. Just one pro who works for you.
Next Steps
- Learn more about what coverage you really need.
- Check your current policies for savings opportunities.
- Connect with a RamseyTrusted pro and let them do the heavy lifting.