LOUISVILLE, Ky. (WDRB) -- The average auto insurance policy in 2025 is expected to hit $2,100 a year, causing car owners to start looking for other options.
Premiums are also predicted to rise by an average of 7.5%, less than last year's 15% increase, but still up again.
So what's the reason behind the rising costs? Medicals bills, if you are in an accident, can take a toll on your rate. Also, the rising price of car parts and repairs in general.
Car parts are up almost 20% the past two years. For 2025, the threats of tariffs could send those prices even higher.
If you're looking to keep your rate as low as possible, consider bundling your car and home policy. If you have an older car, liability only coverage is an option to get the best rate possible.
You can also raise your deductible, or shop around with other companies.
More area business stories:
- Historic New Albany donut shop announces permanent closure after nearly 80 years
- Owners exploring sale options for Louisville's iconic Headliners Music Hall
- Louisville-based Alani Nu company sells for $1.8 billion
- Churchill Downs plans 4-year, $920 million project to transform infield, grandstand seating
