Here's how to save on car insurance, as rates continue to rise
ANOKA, Minn. — The cost of car insurance increased substantially in 2024, and premiums are set to rise for the seventh straight year.
"The last year has been the craziest year we've ever seen, just because of the rise in both auto and home insurance," said Aaron Sorenson, executive vice president at Insurance Brokers of Minnesota, a brokerage that helps Minnesotans shop for carriers.
He says the state's 55% year-over-year rise in rates goes beyond inflation. Auto thefts, an increase in the severity of crashes and severe weather were among the factors.
"Areas where I'm at like here in Anoka, Blaine, Coon Rapids, Andover have gotten hit by hail multiple times and so if your vehicle is out during a hailstorm, that's a really expensive claim," said Sorenson.
Sorenson said that the number of claims — whether they involve car thefts or hail — can affect certain policies state-by-state.
"We might have the exact same information, driving record, vehicle but I might live in Anoka, and you might live in Edina and we might be paying very different rates depending on the claims for that area," said Sorenson.
The easiest way to lower your car insurance rate is to shop around.
Sorenson says switching carriers has saved his customers as low as 5% and as high as 60%, but the average savings is 15% to 20%.
Minnesotans could also consider increasing their deductible and maximize discounts. That could mean bundling or using the carrier's safety app that tracks your driving.
"I know people get leery about the telematics and them monitoring you but you know what, if you have a phone, they're watching and monitoring you anyways, so you might as well take advantage of those discounts," said Sorenson.
Drivers should expect to see smaller insurance increases this year in comparison to last year, but shouldn't expect rates to decrease.
The best way to save is to break up with an insurer, Sorenson said. Another way to lower your insurance costs is to improve credit, as Minnesota drivers with excellent credit pay 16% less than the state average.
