Rising car insurance rates explained: How to lower your bill

With many Americans now paying higher rates for car insurance, there's questions of when they will go down and how to reduce those costs.

SEATTLE - If it feels like you're paying sky-high rates for your car insurance, you are not alone, as it seems almost all Americans are now.

New data shows that auto insurance costs are now 22% higher compared to a year ago. March saw the largest spike in insurance rates since 1976.

There are two main factors playing into this price hike, according to Aaron Tantuyl with the Washington State Office of the Insurance Commissioner.

"Rates were largely stale and barely moved at all from 2018 to 2022, and now nationally they've been going up a little bit, we saw a rise of about 24% over the course of last year," Vantuyl said.

While rates seem ridiculous for some now, there is optimism that they could go down in the near future.

"They do occasionally drop. In 2020, I think rates dropped 3% in Washington state, so it's not all doom and gloom. But it does look like they're going up a little bit, we don't know how much that will continue through the rest of the year, but we're optimistic that maybe it's tempered a little bit from last year," Vantuyl said.

However, there are several ways to save money and get those rates down yourself instead of worrying if they will continue to rise.

"Talk to your broker, talk to your agent, ask about bundling, and of course, shop around. That's a tried and true method of getting a lower rate," Vantuyl said.

Car insurance rates are also largely based on the cost of vehicles and repairs, so getting a cheaper car could also help lower that cost.

"Insurance rates are set and they change based on the cost insurance companies are paying out to cover claims and things like that. So, if over the past year or so your insurance company's been paying out more than they've been taking in, they will have to raise their rates," Vantuyl said.

For those that truly believe they are being gouged, the Office of the Insurance Commissioner handles those inquiries.

"We have a very helpful consumer staff that will review your complaint and either explain things to you or give you information on how to take action," Vantuyl said.

Find more information on the Washington Office of the Insurance Commissioner website.