Auto Insurance Rates Are Skyrocketing — What You Need to Know

Auto insurance rates have soared in recent years — discover why premiums are rising, which insurers score best with body shops, and how to shop smart before buying your next car.

Auto Insurance Costs Are Going Crazy High

Auto insurance is going crazy high and you want to shop around, right? Well, you should, but who should you be shopping with? I got new information for you. Premiums have gone up crazy amounts over the last several years. And there are a lot of factors. I've I've covered this in the past about how much the cost of used cars inflated, how much the cost of parts is, shortage of body shop mechanics, all these things are factors.

Now, tariffs on vehicles pushing up the cost of repairs. So, and insurers were not making money on their investments. You know, the way insurance works is they try to um at least break even on insuring your home or your car and then make money on the investments from the premiums. Well, what's happened in recent years, a lot of big insurers have actually lost billions of dollars on just the policies themselves. And so they've been scrambling to raise premiums to keep themselves solvent.

The Annual Report Card from Body Shops

But the thing that I find the most interesting is something that came on my radar screen two years ago and it's an annual report card on insurers done by body shops which I find fascinating because you got all these ads that the autoinsurers the big ones run on TV and some on social media, but still TV has been very popular as an outlet for insurers.

And so they're all trying to be cute in them. Flo and humanize a very dull product. Flo from Progressive and Jake from State Farm and then the goofy guy from Liberty Mutual and then the Allstate Mayhem guy and what am I forgetting? Anyway, I mean there the ads run all the time and sometimes if you're watching a bad show or bad movie, the ads more interesting than what and entertaining than what you're watching potentially. Um, I only see ads when I watch football.

There's no football right now except the UFFL, which I've not found that exciting. Back to focus. Oh, sorry. I immediately football. My mind just You saw that my mind goes off into chaos, doesn't it? No. Can you imagine what it would be like to have been one of my school teachers? Um, it would have been horrible, right? No. Yes, it would have I'm sure you asked great questions. No, I didn't. I was staring out the window. Oh, yeah. Okay. Anyway, except in economics class. That is true. Nerd alert.

Crash Network’s Annual Insurer Rankings

Anyway, so crashnetwork.com does this list once a year where the body shop people warn each other and alert each other which insurers are behaving and which aren't. And they get a grade from A+ to F. Now, they put out an honor roll each year, which they include all the companies from A+ down to a solid B. And what's fascinating on this list, there's almost not an insurer on here that is a name that people routinely might recognize.

Christa's insurer, AMA Mutual, came in 13 on the list with a B+. Wow. I'm surprised. They've usually been higher than that, haven't they? Well, with the body shop, maybe not. That's a good score. Um, auto owners, which is an insure in some parts of the country people are familiar with, came in 14th. So, by the way, that rating on AMA would be a lucky 13 coming in 13th place, I guess. So with a B+ and as to other brand names, not a single big brand name makes the list. They're all smaller, not marketingbased insurers, but smaller boutiquey generally service-based insurers.

The Top-Rated Auto Insurers in 2025

Why don't you run through the top 10? I'm going to run through the top I was going to run through all the A's, okay? and then have a link on our notes where people can go to the full list. Perfect. How's that? In the episode notes. That's amazing. Number one, North Carolina Farm Bureau. The only insurer in America that gets an A+ from body shops, meaning that they're cooperative cooperative with the body shop. They want to do what's right for the customer.

That's what this is about. The only A went to Chub, which is a rich people's insurer. And then Acuity Insurance got an A minus. Don't know who they are. Michigan Farm Bureau, Alpha Mutual, Inerie Insurance. Those are the only people who got an A minus A or A+. Then the B+es, Pure Insurance, another insurer for rich people. Grenell Mutual. Who are they? AIG private client. Another rich people insurer. Mutual of Anumclaw. E N U M C L A W. What is that? Farm Bureau Property Casually Wisconsin Mutual. And I already mentioned AMA Mutual. The first well-known recognized brand name of a regular insurer. AMA Mutual. the only one in the top 13.

Why Smaller Insurers Are Winning

You can see the full list of all no-name insurers that actually do a good job for their customer and they're not spending money zillion dollars on cute advertising. They're just insuring people. And so if you want to go to our link, easy or you just go to crashnetwork.com. And I love this list because what do people do when they're shopping? When they get most people are with these big insurers and when they get a big premium increase from one, the only places they go for quotes are the other big insurers. Big mistake. Big mistake for your wallet.

Shop Smart Before You Buy

Oh, and while I'm at it, when you're shopping for a car with how expensive auto insurance has gotten, shop insurance quotes before you buy a brand that you're unfamiliar with because there's enormous gaps now and the cost of insuring different brands and models. So you might have in your funnel was your funnel's the vehicles you're interested in considering. You might have three or four different models. If you see what they quote out for auto insurance, you may decide that the third one is a better choice than one, two, or four because the insurance cost could be so very Different.

FAQ About Auto Insurance

1. Why are auto insurance rates going up in 2025?

Rates are increasing due to inflation in car prices, high repair costs, parts shortages, and insurers losing money on claims and investments.

2. What factors affect my car insurance premium the most?

Your driving record, vehicle type, location, age, and credit score all play major roles in determining your insurance cost.

3. Are smaller insurance companies better than big ones?

Yes — according to body shop rankings, smaller regional insurers often provide better customer service and faster claims handling.

4. Which insurer ranked highest in 2025?

The North Carolina Farm Bureau received the only A+ rating from body shops for its excellent cooperation and customer service.

5. How can I find the best car insurance quote?

Compare quotes from at least three different companies — including smaller or regional insurers — to find the best rate and service.

6. What is Crash Network’s insurer report?

CrashNetwork.com publishes an annual report card grading insurance companies from A+ to F based on feedback from auto body shops.

7. Why do popular insurers spend so much on ads?

Large insurers like Progressive, State Farm, and Liberty Mutual invest heavily in marketing to maintain brand recognition despite rising costs.

8. How do car models affect insurance prices?

Some car brands and models cost much more to insure due to expensive parts, high repair costs, or a greater likelihood of theft.

9. Should I get car insurance quotes before buying a vehicle?

Absolutely — checking insurance costs first can help you avoid expensive surprises and choose a more affordable car to insure.

10. How can I save money on auto insurance in 2025?

Shop around regularly, raise your deductible if possible, maintain a clean driving record, and explore discounts like bundling or safe driver programs.

Conclusion

Auto insurance prices are climbing fast — but as this body shop report shows, smaller, service-focused insurers often deliver better customer experiences and fairer claims handling. Before buying your next car, always compare insurance quotes to save big on long-term costs.