For many Americans, increasing auto insurance premiums have been a concern over the past couple of years. However, those concerns may begin to be alleviated. While average full coverage car insurance rates increased by $289 in 2024, this is less than the $336 jump from 2023 to 2024, according to Bankrate's "2025 True Cost of Auto Insurance" report. Experts also predict that 2025's rate increases will be more moderate, the report said.

Here four reports agents may find useful when discussing the current state of personal auto insurance with their clients:

1) Assess the market for options. Shopping around for a better rate is one solution to sky-high auto premiums that consumers should consider. Thirty percent of consumers have switched insurers in the past five years, according to the 2024 “How to Save Big on Your Car Insurance" study by Consumer Reports. Most of those who switched saved money on premiums, with a median annual savings of $461. 

As property & casualty insurance profitability improves and auto insurance rate increases start to ease, consumers who shop are more likely to find a better rate in 2025, according to J.D. Power. Agents can work with various carriers and advise clients on the best options available to them, helping counteract the price increases caused by cost factors that are beyond their control. 

2) Trust is top driver of customer satisfaction. While premiums continue to rise for many consumers, agents should know that these rate increases may not necessarily erode customer satisfaction with auto insurers, according to the J.D. Power 2024 "U.S. Auto Insurance Study."

The report, which includes responses from over 41,000 auto insurance customers, details that while premium increases negatively impact customer satisfaction, those negative influences can be offset by high levels of trust that insurers will come through when clients need them.

More than half (51%) of customers say they have little trust in their insurer, yet, 15% have high levels of trust and 34% have some level of trust even in the face of premium increases, according to the report. Agents can highlight trust and customer satisfaction as a factor to consider, emphasizing the importance of selecting a policy based on the quality of coverage and not just price.

3)  Opportunities in UBI auto insurance. As clients look for ways to tailor their auto coverage to make some savings, it's clear that the future of auto insurance includes telematics.

The market is seeing a shift, with traditional insurance consumers dipping below 60% for the first time, and telematics-powered UBI crossing 40%, according to the “Driverscape 2024: Opportunities in UBI Auto Insurance" report by the American Association of Insurance Services (AAIS).

Telematics usage continues to climb as clients look to tailor coverage to their particular driving habits and lifestyle. By highlighting the benefits of telematics and similar UBI carrier programs, agents can meet their customers' expectations when it comes to pricing, as well as provide an avenue for feedback on safe driving habits.

However, agents should also highlight the potential concerns that arise with driver data collection. Fifty-four percent of consumers did not participate in an insurer's telematics program because of privacy concerns, according to the 2022 “Auto Insurance Telematics: Consumer Attitudes and Opinions" report by the Insurance Research Council (IRC).

While the rules surrounding the use of information collected from a person's car is on the radar of the Federal Trade Commission (FTC), some states have enacted laws allowing consumers to opt out of having their personal information sold. These protections vary widely and typically do not include connected-car data, leaving many privacy gaps, according to a Reuters analysis.

4) Number of uninsured and underinsured motorists grow. One in 3 U.S. drivers (33.4%) were either uninsured or underinsured in 2023, a 10-percentage point increase in the combined rate since 2017, according to the “Uninsured and Underinsured Motorists: 2017–2023" the latest report by the IRC.

With the recent increases in auto insurance premiums, going uninsured can be a tempting option for consumers. As many as 22% have considered going uninsured to save money, according to a 2023 study from Trusted Choice®.

For agents, providing options such as a personal umbrella that includes uninsured/underinsured motorist (UM/UIM) coverage is key to protecting not only their clients, but also their agency from potential errors & omission claims. 

Olivia Overman is IA content editor.