STAMFORD, CT, Oct. 9 — While car prices have begun to stabilize, the cost of auto insurance keeps going up.
After years of double-digit increases, the cost automobile insurance was supposed to come down this year. But according to the Insurance Information Institute, average personal auto insurance will increase by 7% in 2025 and rise an additional 4% in 2026. Meanwhile, Bankrate predicts an increase of 12% over last year. Insurify originally predicted only a 5% percent increase for 2025, but with tariffs added on, their estimate is now 16%.
There are lots of reasons why insurance is going up. But there is also a new way dealers can help their customers.
Let’s start with the reasons:
Inflation: Despite what anyone says, inflation is real and growing. The cost of vehicles and parts are going up. Insurers have no choice but to follow suit.
Repairs: Cars are becoming more complex…and more expensive to fix. According to JD Power, the average cost of vehicle repair jumped 26% from 2022 to 2024.
Climate change: Severe weather like hail, tornadoes, hurricanes, wildfires and floods are increasing in frequency and severity. All of these conditions drive auto insurance premiums higher.
Tariffs: About 60% of parts used in automotive repairs come from Mexico, Canada or China. Car parts are more expensive. Insurers take that into account.
Distracted driving: Speeding, talking on cell phones, reading/sending texts, add up to a double-whammy. When others are caught doing it, everyone’s insurance goes up. When your customers do it, they get a hefty ticket and an insurance increase.
So what can consumers do? The usual response is to go online, shop around, maybe switch to charge-by-mile or a policy that tracks your driving behavior. But even then customers will still likely end up paying more.
But now there is a way dealers can help their customers with insurance.
In The Car, LLC, is an embedded, digital-first platform that plugs right into a dealership’s DMS. It uses information customers have already provided and then, with the help of AI and algorithms, adds volumes more third-party data to create a customized, A-rated insurance policy in less than a minute. In the overwhelming majority of cases — though not always — the insurance will cost less.
But how can In The Car save the customer money? Marketing costs for big brand insurers account for 10-15% of premium. In The Car has no marketing costs, so it can pass that savings directly on to customers. Better, faster, cheaper — literally.
When a customer complains about the high price of insurance, dealers can cite the reasons listed above and then offer them a way out. “Shall we take a look at what In The Car can do for you?” Just one keystroke on a DMS can generate a high-quality, A-rated insurance policy in less than a minute.
In The Car works both in the showroom and the service department. In the showroom, the platform is incorporated into the DMS system. Salespersons can ask a customer if they’re interested in an insurance quote. The likelihood is good. According to JD Power, 57% of customers shopped for a new insurance last year.
In The Car recently introduced an RO version that generates a policy for customers while they’re waiting in the service department. The text announcing the customer’s car is ready also includes a link to the custom-tailored policy.
In The Car is already live in five states. In both the showroom and RO versions, take up rate is between 20 and 25%. The company will continue to add states year over the year.
About In The Car
In The Car, LLC, is a leading provider of white-labeled, turn-key, digital-first insurance programs designed for OEMs and dealerships to provide a seamless, real-time integrated insurance experience for customers at the point of sale. More information about the company and its products and services is available at www.inthecar.com.