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Car insurance rates continue to climb, giving drivers sticker shock when it’s time to renew coverage and making affordable auto insurance more out of reach. According to the most recent Bureau of Labor Statistics (BLS) data, auto insurance rates increased 7.0% in May 2025 compared to the year prior. But inflation isn’t the only issue plaguing the auto insurance industry. Rising repair costs, severe weather events, higher claim payouts, and increased litigation have kept rates elevated for many drivers throughout the U.S.
Across the board, drivers are seeing premium increases even without any violations or accidents on their record. Given the increased costs, when do you know it’s the right time to switch auto insurance providers? We spoke with three insurance industry experts about when it may make sense to start shopping around and get multiple car insurance quotes.
Learn more about your valuable (and affordable) auto insurance options here.
When should you change auto insurance providers?
Finding inexpensive but still valuable car insurance these days is becoming more challenging, even if you have a clean driving record. That’s because the insurance industry at large has been hit with a variety of issues over the last several years.
“Our market is much smaller than it was before. And it was just kind of the perfect storm of COVID happening, the lack of parts…the frequency of accidents. Not only that, but how fast people are driving because they’re distracted,” says Colleen Parsons, client advisor at World Insurance.
Auto insurance providers base their pricing on risk. All of these events have elevated levels of risk, which have led to higher premiums.
“So folks might not have any changes in their own personal driving records, no claims, no tickets…but their rates are still going up and they don’t understand it. It’s really important to note that we all pay for each other,” explains Alaina Hixson, director of sales and operations at the Churchill Agency, an independent insurance agency.
Because of this, finding affordable car insurance has become more difficult. You might find rate hikes among all insurance providers. But aside from price, there are several situations where it can make sense to switch auto insurance providers:
You want different coverage options
The majority of drivers must obtain minimum levels of liability insurance, per their state laws. You can typically add on comprehensive coverage and/or collision coverage, which are optional. Combined, these are often referred to as “full coverage.” Though you can find these coverage options at most insurance companies, there are other types of coverage you might be looking for to meet your needs.
“For instance, a lot of folks look for roadside assistance or they want a low glass deductible or new car replacement. Not all carriers offer all of those types of things,” says Hixson. If your current insurance company doesn’t have the coverage options you need, that’s a very valid reason to start shopping around.
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You want more choices
If you’re working with an insurance agent, the type you work with matters. Captive agents typically work with one insurance company and can only offer policies through that company. Major insurance providers have captive agents. On the other hand, independent agents have the freedom to work with multiple insurance providers and can provide you with more choices.
“Captives [agents] are kind of slowly becoming more of a thing of the past, because people want options, because in this environment, in this market, we need to be able to shop,” says Hixson.
While auto insurance premiums are generally increasing everywhere, some companies may still offer lower rates or better coverage options than others.
“Home and auto insurance are very competitive…Of course, every state, every location is different, but usually there are many options,” says Mark Friedlander, senior director of media relations at the Insurance Information Institute, a national nonprofit research and education organization.
You want more value
Everyone wants cheap insurance. Hixson notes that price is always going to be a major factor for people when considering switching auto insurance providers or staying put.
But it’s not only the price you want to think about, but value as well. What are you getting for the money you’re paying and what is your experience as a customer? Instead of thinking of just price, look at three things to assess the company’s value.
“Does the carrier give the coverage that they [customers] want and need for the price point that works for their budget? And then service and claims reputation are probably the three biggest items that need to be looked at,” says Hixson.
You’re not a satisfied customer
Whenever you’re paying for a product or service, your satisfaction is important. If you’re happy, you might stay loyal to a company even if prices go up a bit, because of what you get in return. But if you’re not satisfied, it’s time to start shopping around.
If you fall under that umbrella, you’re not alone. In fact, 38% of customers aren’t very satisfied, according to the J.D. Power 2025 U.S. Auto Insurance Study. If you’re dealing with poor communication, slow response time, claims mismanagement, or something else, you have plenty of other car insurance options to consider.
The bottom line
The fact is that many drivers are dealing with price hikes now, making it more tempting to jump to another provider. You can try to lower auto insurance costs by first reaching out to your current company. Increasing your current deductible and bundling insurance policies can help you get more affordable car insurance, too.
But if the increase seems excessive or if you’re experiencing one of the situations above, it makes sense to compare car insurance options and shop around. Look at coverage options, potential discounts, and obtain several auto insurance quotes to get started.
“We always recommend, if you do shop your coverage, get a minimum of three quotes,” says Friedlander. To find the best car insurance coverage, do your research and find a company that can meet your needs. “I think it’s very important as a consumer to be your own advocate, to ask questions,” says Parsons.