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Eight out of 10 U.S. drivers think auto insurance has become too expensive for the average person, according to a recent study by Jerry.

The rising rates even has high earners making more than $129,000 per year on the move, with 49% shopping for better deals and 53% settling for less coverage than planned in 2024.

Despite the increase in premiums, Josh Damico, VP of insurance operations at Jerry, said 2025 is “poised to be a year of stabilization for car insurance rates.”
“While small rate increases of 2 to 3% are expected as the market returns to normal, this is a welcome shift after the 50% rise in rates over the last three years,” he added. “It is a sign of the market regaining balance and the ideal time for American drivers to explore new car insurance options.”

In 2025, interest rates are predicted to come down even further as new car prices stabilize and used vehicle prices drift lower, according to Jerry.

Other key insights from the study include:

  • Shifting car insurance shopping habits: More than half (55%) of drivers shopped for lower rates in the last year, a significant jump from 38% the previous year. This includes 64% of Gen Z, 67% of Millennials, 53% of Gen X, and 42% of Boomers.
  • Coverage trade-offs: Over 22% switched insurers for lower rates, 27% opted for a higher deductible to lower premiums, 26% bought less coverage, and 63% purchased less than they thought they needed.
  • Uninsured drivers: Nearly one in 10 (9.7%) drivers went uninsured at some point in the past year due to the burden of rising premiums. For those seeking a safer way to save, drivers using Jerry save an average of over $600 annually on car insurance.
  • Point of purchase: Seventy-one percent consider car insurance costs when initially choosing what car to buy, including 85% of Gen Z, 75% of Millennials, 69% of Gen X and 67% of Boomers.
  • Budgeting techniques: The high cost of car insurance is causing some drivers to cut back on family vacations (32%), clothing (30%), and groceries (26%).
  • Comfortable using data for better rates: Sixty-one percent of drivers would be open to an insurer monitoring their driving electronically for a possible rate discount, up from 54% a year prior.
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