Many drivers (39%) have skipped or delayed car maintenance due to rising insurance and vehicle costs. (Credit: Rido/Adobe Stock)
Drivers are increasingly fed up with rising auto insurance premiums, and they're making sacrifices and seeking alternatives to cope, according to a new study from Guardian Service.
In 2025, two out of three auto insurance policyholders saw their annual premium go up. The average increase was $70, but about one-quarter of drivers (27%) saw an increase of $100 to $200.
The hikes are fueling frustration with auto insurers. About 4 in 5 drivers (85%) believe auto insurance pricing models are unfair. Nearly 3 in 4 (71%) think insurers are using inflation as an excuse to raise rates more than necessary.
About one-quarter (23%) have considered canceling their current policy to find cheaper coverage elsewhere. But 20% of drivers said they shopped around and couldn’t find a better deal.
Drivers say they’ve had to make sacrifices — and sometimes policy changes — to continue to afford coverage:
- 39% of drivers have skipped or delayed car maintenance due to rising insurance and vehicle costs.
- 15% have cut back on driving to save on expenses.
- 15% have switched to a different auto insurer.
- 10% have reduced their liability coverage.
- 10% have increased their deductible to lower monthly costs.
- 8% have considered selling their car.
- 7% have dropped comprehensive or collision coverage.
Drivers said they’re increasingly open to tech-based solutions that could help lower their insurance costs. For example, 33% said they would consider switching to a usage-based insurance program that tracks their driving for discounts. If it meant lower insurance costs, 42% would install AI-driven safety features, and 35% would trade certain driving freedoms (e.g., no late-night driving, speed monitoring).
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