Please ensure Javascript is enabled for purposes of website accessibility

Call a licensed agent: 833-964-9663

Compare now

10 Emerging car insurance trends to look out for

Katie Dee on 2024-10-04

10 Emerging car insurance trends to look out for

Picture of Written by <a href="https://rateretriever.com/about/katie-dee/"><span style="text-decoration: underline;">Katie Dee</span></a>
Written by Katie Dee
Picture of Edited by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Edited by Alyssa DiCrasto

The car insurance industry is a constantly evolving and innovative space. For consumers, it can sometimes feel impossible to keep up with all the new technology and coverage options available. That’s where we come in.

Staying in the know is one of the best ways for you to save money on your car insurance premiums, so we did the leg work and compiled a list of the most prevalent emerging insurance trends for you.

1) Usage-based insurance (UBI)

This is a type of car insurance that uses data about your driving habits to help personalize your premium. UBI looks at aspects such as how many miles you drive, when you drive, and where you drive, as well as safe driving habits like how fast you drive and how you brake and accelerate in order to assign you a rate that more accurately reflects your driving habits.

Find cheap car insurance near you

Oops! We could not locate your form.

2) On-demand car insurance

This type of insurance works best for drivers who need coverage but don’t need it for a full year (the length of most traditional policies). It allows you the flexibility to pay for coverage when and how you need it.

3) Pay-per-mile insurance

Pay-per-mile car insurance allows you to pay for coverage based on how many miles you drive. This kind of insurance could be right for you if you need coverage on a car that you don’t drive regularly because it could help to save you big on your rates.

4) AI and automation

Insurance companies have started to integrate AI technology into their claims processing, customer services response, and risk assessment. This technology allows insurance companies to more quickly and efficiently handle repetitive processes and answer routine questions. This is a benefit to you because it helps to improve customer services such as getting your questions answered quickly and speeding up the whole claims process.

5) Advanced safety features

As driver-assistance systems in vehicles get more and more advanced, a lot of insurers have started offering discounts for drivers with cars that include these features. This encourages people to choose safer vehicles in order to save on their insurance rates, even if the vehicle itself might be more expensive up front.

6) Electric vehicles

As electric vehicles (EVs) gain popularity, insurers are adapting their policies to cover specific risks associated with EVs—like fire and electrocution. Insurance providers also may offer incentives for eco-friendly vehicles.

7) Predictive analytics

Insurers are leveraging predictive analytics to assess risk profiles and improve underwriting processes. The goal here is to more accurate set rates based on individual driver behaviors and conditions. Ideally, this will make car insurance fairer as well.

8) Regulatory changes

Evolving regulations regarding data privacy and insurance practices are impacting how car insurance providers collect and use consumer data, increasing price transparency.

9) Connected Cars

As vehicles become smarter and more connected, the risk of cyber threats has increased. Because of this, insurers are starting to develop policies that address potential cyber vulnerabilities in connected cars.

10) Smart Contracts

Smart contracts are self-executing agreements that can automate different tasks in the insurance space. They are changing the way insurance companies go about policy enforcement, policyholder interactions, fraud prevention, and more.

Frequently asked

What factors affect your car insurance rates?

There are dozens of factors that affect car insurance rates. Some of the most notable factors are your location, age, gender, credit score, driving record, claim history, vehicle type, coverage limits, coverage types, and deductible. Additionally, the car insurance company you select can affect your car insurance premium.

Does your lifestyle affect your car insurance?

There are several lifestyle-related factors that can impact the cost of your auto insurance policy. For example, if you have a long commute to work or take road trips frequently, you might pay more for car insurance than someone who drives less often. Similarly, if you live in a city or urban area, your rate might be higher than someone who lives in a rural area. However, factors like your job, hobbies, or health don’t have any impact on your car insurance.

How does where you live influence the cost of auto insurance?

Where you live has a significant impact on the cost of your car insurance policy. Insurance companies look at things like the severe weather risks in your area, the rate of vehicle thefts in your neighborhood, the number of uninsured drivers in your location, and the cost of car repairs and labor. If you live in an area with few risks, you will probably pay less for car insurance.

Share this article

The Most Expensive Vehicles to Insure 2023

Alyssa DiCrasto on 2023-11-23

The Tesla Model S is the most expensive car to insure in 2023

Picture of Written by <a href="https://rateretriever.com/about/katie-dee/"><span style="text-decoration: underline;">Katie Dee</span></a>
Written by Katie Dee
Written by Katie Dee
Picture of Edited by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>
Edited by Alyssa DiCrasto
Edited by Alyssa DiCrasto
Published on 2023-11-23

Read time: 3 min

Car insurance prices vary drastically depending on factors such as your age, the state you live in, and – of course – the make and model of your vehicle. Insurance companies set rates based on how much risk is associated with a certain policy, and the vehicle you drive can be an indicator of that risk.

Typically, luxury vehicles and electric vehicles come with higher car insurance rates because of the increased cost for repair and replacement parts, but what exactly are the most expensive car models to insure in 2023?

electric vehicle

Related Articles

Is your state expensive for car insurance?

Subaru is the cheapest popular brand for car insurance

How to save money on car insurance in California

Top 5 most expensive cars to insure

It might not surprise you to hear that according to a recent report from Rate Retriever, Tesla is the most expensive popular car brand of 2023. Teslas come with higher car insurance rates because of their luxury status as well as the increased cost associated with repairs on electric vehicles.

The 2023 Tesla Model S is currently the most expensive vehicle model to insure out of the top 100 best-selling models of 2023. With an average annual premium of $4,048, this model is 90% more expensive than the national average across all vehicles.

Tesla also claims the number two spot for most expensive cars to insure in 2023 with the Tesla Model Y, which costs about $3,088 per year to insure on average. While insurance on this model is almost $1,000 cheaper than the Model S, it is still 45% more than the national average.

The next most expensive model to insure is the 2023 Dodge Charger SXT. This model has an average annual premium of $2,957, 39% higher than the national average. Since this is a sports car, it’s increased risk of theft and enhanced speed capabilities may make it riskier for car insurance companies to cover, resulting in higher-than-average premiums.

Another Tesla model takes the spot for fourth most expensive vehicle model to insure in 2023. The Tesla Model 3 costs about $2,879 per year for car insurance, 35% higher than the national average.

Lastly, out of the top 100 most popular vehicles, the fifth most expensive to insure is the BMW X5 SDrive 40i. This model has an average annual premium of $2,696, 27% higher than the national average.

What makes certain cars more expensive to insure?

There are several aspects that car insurance companies consider when determining your exact rate. To put it simply, it all comes down to risk. Insurance companies are looking to bring in more cash from premiums than they are paying out in claims, so vehicles that will bring higher cost claims, will be assigned higher cost premiums.

This is why all five of the most expensive models of 2023 are either electric or luxury vehicles. These types of cars are often more expensive to repair if they are in an accident and much more expensive to replace if they are totaled or stolen.

Furthermore, repairs on electric vehicles often require a specialty mechanic or specialized parts that are in short supply, adding to the cost and accruing more risk for insurers.

Saving on car insurance with an expensive car model

Even if you own one of the most expensive models for insurance in 2023, there are still steps you can take to save money on your car insurance premium. One way to be sure you are not overpaying for your premium is to compare prices from multiple different car insurance companies in your area to see who has the cheapest rates. Take our short quiz to compare personalized rates and find savings in 30 seconds.

Additionally, credit score is considered in setting car insurance rates in all states besides California, Hawaii, and Massachusetts. According to Rate Retriever’s report, having an above average credit rating can save you around 17% on car insurance, so being mindful of your score and working to improve it can help to decrease your rates.

Taking a drivers safety course can also help to lower your car insurance rates. Many insurers have discounts associated with completing these courses because they make you less likely to file a claim and, therefore, less risky to insure.

Do I Need a Final Expense Policy?

Alyssa DiCrasto on 2022-11-23

Do I Need a Final Expense Policy?

What is Final Expense?

Final expense is a type of permanent life insurance that is meant to cover expenses associated with the end of life such as funeral and burial costs, final medical bills, and sometimes costs associated with settling an estate. Final expense is also commonly known as burial insurance or funeral insurance.

Your final expense policy can give your beneficiaries peace of mind upon your passing and ensure you get the funeral and burial you want.

Learn more about final expense

Why would I need a final expense policy?

Most commonly, people get a final expense policy for one of the following reasons:

  • They want to make sure their family can pay final medical bills and funeral/burial costs

  • They want to pay for or plan their own funeral and burial services – this can be accomplished with a traditional final expense policy or a pre-need policy through a specific funeral home

  • They want to leave their family some money for end-of-life expenses but they do not want to have the results of a medical exam impact their life insurance policy – most final expense policies do not require a medical exam

Do I need final expense if I already have a term life policy?

If you have term life insurance, the death benefit can be used to cover any funeral or medical bills. However, term life policies are usually intended to cover your loss of income in the event of your passing. If you are a primary wage-earner in your family, you may decide that you would like to reserve your entire term life death benefit for your family’s day-to-day expenses.

You can supplement your term life policy with final expense insurance to allow your family to use the entire term life benefit to cover their living expenses while using the separate final expense funds to cover any pricey, unexpected end-of-life costs.

Ultimately, the decision of if you need a final expense policy or a term life policy – or both – depends on your personal goals for your life insurance.

Read more about term life vs final expense >

Do I need final expense if I already have a whole life policy?

Again, the answer to this question is: it depends. The primary purposes of a whole life insurance policy include wealth transfer, preservation, and tax-deferred wealth accumulation. Your beneficiaries can use the death benefit to cover your loss of income, their living expenses, any outstanding debt, their school tuition and more, or you can leave the death benefit to a charity of your choice.

Your beneficiaries can use your whole life policy death benefit to cover funeral and medical expenses. However, if you have a specific desire for how they use your death benefit, like if you want it to cover your child’s college tuition, for example, you may want a separate final expense policy that is dedicated to your end-of-life costs.

How to get the right life insurance policy

Your life insurance is highly personal decision. To make sure you have a life insurance policy – or a combination of policies – that will meet your goals and the needs of your beneficiaries, it’s often best to talk to a professional.

Learn more about life insurance and find an agent >

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results.  

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide. 

Share this article

Rate Retriever Logo
Rate-Retriever-Icon-01-1.png

Resources

FAQs

Auto Insurance Rates Report

Best Comparison Websites

See all

Company

Reviews

California residents

Sitemap

Find coverage in your state

AL

AK

AZ

AR

CA

CO

CT

DC

DE

FL

GA

HI

ID

IL

IN

IA

KS

KY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Soleo Communications, Inc. BBB Business Review

Copyright © Rate Retriever Insurance Services LLC, a wholly-owned subsidiary of Soleo Communications, Inc. 2025. All Rights Reserved. Use of Rate Retriever’s services is subject to our Privacy Policy, Disclaimer, and Terms and Conditions. Accessibility statement. Cookie policy. Do Not Sell My Personal Info.