NEWPORT NEWS, Va. — One topic that seems to impact nearly everyone is auto insurance and, what feels like, its ever-increasing prices.
“A lot of Americans are stuck between a rock and a hard place. You need your car to go to work, but the cost of insurance is really high,” says Bankrate analyst Shannon Martin.
In fact, from 2023 to 2024, Bankrate, a personal finance company, found the average cost of full coverage for car insurance was up 26%. Though, our part of the world fared better in comparison.
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In Virginia, the average was $568 below the national average at $1,975. In North Carolina, the average was $838 less than the national average at $1,705.
Researchers landed on the statistics by analyzing the average cost of car insurance in each state and the median household income in each state. If you include an accident in that price, the cost of insurance increases.
“If you have an accident or a ticket, for most states, your policy will be surcharged for up to three years,” says Martin.
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Martin says if you are involved in a crash, you will see a rate hike of 43% or close to $3,300 a year. If you add injuries into the mix, that is another story.
“We had a lady that was in a typical, you know, fender bender. [There] wasn't a lot of damage [and] the injuries weren't significant. She had muscle injuries to her neck and back, but her medical bills were $36,000,” says Brad Huffman.
Brad Huffman, Senior Partner at Huffman & Huffman, has been helping his clients deal with the aftermath of crashes for 40 years. High medical bills are part of the reason that he says a new Virginia law will help drivers avoid debt.
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| | Injury of death of one person | Injury or death of two or more people | Property damage |
| Policies effective Jan. 1, 2022, through December 31, 2024 | $30,000 | $60,000 | $20,000 |
| Policies effective on or after Jan. 1, 2025 | $50,000 | $100,000 | $25,000 |
As of January 1, 2025, drivers will see new minimums for liability insurance policies.
“Under the new law, you can now combine the two $50,000 policies so you now have $100,000,” he says. “That's a huge difference. So, a few years ago, you had a total of $25,000 available. Now, you have $100,000. I mean, that’s quadrupled and it's very, very important.”
Huffman says that is not the only coverage available to you.
He says, “in addition to that, you can use not only the other driver’s insurance, but you can also add on your insurance. Now that's a new law as well."
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Check your policy though because it will likely cause your monthly payments to go up.
“You will see a difference if you're someone who's carrying the lowest amount, but these types of changes aren't huge. With insurance [being so] expensive, every penny counts. So, I know people will notice,” Martin says.
In 2025, Martin says another reason to expect higher prices is because of reinsurers passing down their expenses.
“One thing that we've noticed is that reinsurers, which is the insurance company for insurance companies, 50% of them are expected to ask for increases in the double-digit percentage. So, those increases from the reinsurers get passed to the insurance companies and then get passed to policy holders," Martin says.
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As Bankrate reports the average cost of full coverage is $2,543 (a $529 increase over last year) there are ways you can save.
- Focus on your driving
- Keep a clean driving record
- If you have a lapse in coverage you will end up paying more
- Tickets will raise your rate if you are caught speeding
- Getting a DUI or causing an accident will raise your price the most
- Watch your credit
- The worse your credit is, the more you will pay
- Choose the right vehicle
- Newer vehicles with more electronics will cost you more because they are more expensive to repair
- Prepare for major life events
- The cost differs if you are a single driver, have a bundled policy, or have a teenager
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If you have an accident, Huffman also says to be careful of insurance companies that will take advantage of you.
“A lot of times the insurance company for the other person will reach out to the injured party and they'll try to get a statement from them, and in that statement, they will try to get them to say something that might hurt their case in some way,” says Huffman.
Huffman says some companies have been known to offer payment for medical bills in addition to compensation.
“The problem with that is, is that if you take that settlement then you're out of luck. So, no matter what happens to you down the road […] there's nothing you can do about it,” Huffman says. “So, the advice is, don't settle anything until you know the full extent of your injuries.”
Experts recommend increasing insurance coverage to at least $100,000.
