The Rise of Car Insurance Premiums and How Defensive Driving Courses Can Help

Did you get an unpleasant surprise last time you opened your car insurance bill? If so, you’re not alone, and if not, your increase might be coming soon. According to a recent IDriveSafely survey, 69% of drivers recently faced premium increases, and 73% weren’t even given a reason for the hike.

This has left drivers everywhere frustrated and looking for answers. What, exactly, is going on — and is there anything you can do about it?

Why Are Auto Insurance Rates Going Up?

Many drivers are facing significant price increases. In fact, from 2022 to 2023, the average car insurance premium in the U.S. increased by 19.2%Insurance Services Will Car Insurance Rates Go Down In 2024 Guides — that’s no small change. So what’s causing this?

• Record inflation rates: This is the top reason cited for insurance premium increases. As everything gets more expensive, companies have no choice but to pass some of the costs to consumers.

• Higher vehicle repair costs: As the cost of car repairsHow To Avoid Ripoffs At The Mechanic Driving Resources increases, carriers are passing this along to consumers.

• Higher healthcare costs: Injuries resulting from covered accidents now cost carriers more, leading to rate increases. 

• More natural disasters: Storms, floods, and other disasters caused by climate change have resulted in more claims, further stressing the insurance industry.  

The Struggle Is Real: How Rising Insurance Costs Impact Drivers

Not only are insurance increases squeezing drivers’ wallets, but they’re also stressing them out. Not surprisingly, 58% of drivers are feeling the financial strain from insurance price hikes.

In states like Florida, where auto insurance costs are 48% higherCar Average Cost Of Car Insurance In Florida #cost Insurance than the national average, the impact is even greater. Here, many drivers are faced with choosing between keeping their coverage and having enough money for other basic needs. 

Should you delay that important car repair or cut back on your grocery budget to afford your insurance bill? These are the types of questions many drivers now have to face. And it could get worse. A surprising 40% of drivers who experienced rate increases say they won’t be able to afford their insurance if prices continue to rise. 

Fed-Up Drivers Seek Cost-Saving Solutions

As car insurance costs continue going up, drivers are actively looking for ways to ease the financial burden. Here’s how they’re trying to cope according to our research.

A Willingness to Learn

Many drivers are ready to hit the books again if it means saving money. An impressive 84% say they’re willing to take a defensive driving courseDefensive Driving for insurance discounts.

Driving with Caution

Rising insurance costs have also changed the way people drive. About 40% of drivers now hesitate to even get behind the wheel for fear of an incident that could further increase prices. Another 38% of drivers report being even more careful on the road.

Untraditional (And Sometimes Illegal) Solutions

The financial pinch has led some drivers to consider extreme solutions. About 9% of drivers say they’re considering selling their cars to avoid paying for insurance. Another 18% have considered driving without insurance — a risky and illegal option.

A Smart Fix: Defensive Driving Courses for Safety and Cost Savings

There’s an important solution to explore before you consider going to extremes. You may have heard that a defensive driving course is a great way to clear a ticketDmv Approved Traffic School Traffic School. But 55% of drivers are not aware that these courses can also lower your car insurance premiumsTrending 5 Easy Ways Save Money Auto Insurance Defensive Driving.

Here’s a little secret: 43% of drivers who took defensive driving ended up paying less for car insurance. Even better, 62% said they felt safer on the roads. Of those who completed the course, 74% said they think it should be mandatory, and 81% believe more people taking the course would lead to fewer accidents.

Ready to Take Action?

Now is the perfect time to get started with an online defensive driving course. Not only will you learn skills to keep you safer behind the wheel, but you may also earn a discount on your auto insurance. IDriveSafely offers state-approved, fully online courses you can take at your own pace. Explore your optionsInsurance Discount today!