Car insurance rates are skyrocketing. Here are some reasons why

PHILADELPHIA (WPVI) -- Car insurance rates are surging.

A new report shows premiums have gone up more than $240 on average nationwide.

In fact, Action News consumer reporter Nydia Han talked to a viewer in Wallingford, Delaware County whose rates nearly doubled from $164 a month to $300.

If your car insurance went up without explanation, Kevin Benenhaley can relate.

"No traffic violations, no citations, no accidents, no claims," he said.

Car insurance prices have increased by 14.7 percent from January 2022 to January 2023.

"We are seeing insurance rates increase across the country," said Mark Friedlander of the Insurance Information Institute.

The institute says several factors are driving the increase.

• Accident frequency and severity
• The higher cost of replacements and labor to fix vehicles
• More claims that involve lawsuits
• Higher medical costs

So what's the advice from the insurance industry itself?

"Shop your coverage. There are dozens of companies looking to grow their business, and they want you as a customer," he said.

"Auto insurance policyholders can save $500, even $1,000 or more per year, every year," said Kevin Brasler, Executive Editor of Consumers' Checkbook.

Consumers' Checkbook says to consider switching to a new company even if you get a discount with your current company to bundle your auto insurance with your homeowner's insurance.

"That 20 percent discount, that 15 percent discount, it doesn't mean anything compared to the 40 percent discount you can get," said Brasler. "They're going to give you a big discount to sign up with them to move your business to that other company."

Benenhaley says he did switch insurance companies and slashed his rate almost in half.

And according to a Checkbook Magazine survey, paying more doesn't necessarily get you better service. In fact, Checkbook says the lowest-priced auto insurance companies often offer some of the best claims service.