Wisconsin drivers, known for navigating everything from snowy country roads to bustling Milwaukee avenues, are accustomed to adapting. Whether you’re gearing up for a Packers game in Green Bay, enjoying a scenic drive along the Great River Road, or commuting in Madison, reliable and affordable car insurance is a must in The Badger State.
That’s why it’s important to stay informed about shifts in the insurance landscape.
What’s Happening?
Erie Insurance, Wisconsin’s 6th largest auto insurance carrier, is gearing up to increase rates across the state. For renewal business effective on or after August 1, 2025, Erie policyholders will see an average rate increase of 4.9%. This change is projected to increase the company’s overall collected premiums in Wisconsin by nearly $11 million– or an estimated $86 per policy.
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Understanding the “Why”: Factors Behind Insurance Premium Adjustments
It’s natural to wonder why your insurance rates might change, especially when faced with an upcoming increase. While each adjustment is different, it’s usually driven by a variety of factors:
- Rising Repair Costs: Today’s vehicles are more technologically advanced than ever. Features like sophisticated sensors, cameras, and complex computer systems, while enhancing safety, also mean repairs are often significantly more expensive. From a minor fender bender to more serious damage, the cost of parts and specialized labor has climbed.
- Inflationary Pressures: The broader economy impacts nearly every sector, and insurance is no exception. Inflation affects everything from the price of raw materials used in car parts to the operational costs of repair shops and insurance companies themselves.
- Accident Frequency and Severity: An increase in the number of accidents or the average cost of claims resulting from those accidents can put upward pressure on rates. This can be influenced by traffic density, driving behaviors (like distracted driving), and even road conditions.
- Weather-Related Claims: Wisconsin experiences a full spectrum of weather, from heavy snowfall and icy roads in winter to severe thunderstorms and hail in warmer months. These conditions can lead to an increase in weather-related auto claims, impacting overall insurance costs in the state. Deer-vehicle collisions are also a notable risk in many parts of Wisconsin.
- Medical Expense Trends: Auto insurance often covers medical costs for those injured in accidents. As healthcare expenses continue to rise, the potential cost of injury claims also increases, which can influence premium calculations.
- Uninsured/Underinsured Drivers: When an accident involves a driver without insurance or with insufficient coverage, the burden often falls on the insured driver’s policy (specifically their uninsured/underinsured motorist coverage). A higher prevalence of such drivers can lead to increased costs for all policyholders.
What This Means for Erie Policyholders in Wisconsin
For Erie customers in Wisconsin, this 4.9% average increase means that renewal premiums processed on or after August 1, 2025, will reflect this adjustment. It’s important to remember that this is an average increase.
The actual change to your individual policy will depend on your specific circumstances, such as your driving record, the type of vehicle(s) insured, your chosen coverage limits and deductibles, your location within Wisconsin, and any discounts you currently receive.
How to Find More Affordable Car Insurance in Wisconsin
Connect with Erie Before Your Renewal: If your policy renews on or after August 1, 2025, reach out to your Erie agent before that date. Discuss your upcoming renewal premium and ask if there are any immediate steps you can take. Perhaps there are new discounts you qualify for, or an adjustment to your policy that could make sense.
Embrace the Power of Comparison Shopping: This is a cornerstone of finding cheap car insurance. Don’t assume your current rate is the best available. Instead, use a comparison tool to gather quotes from multiple insurers in your area to see how their costs differ.
Consider Adjusting Your Deductibles: Your deductible is what you pay out-of-pocket on a comprehensive or collision claim before your insurance takes over. Opting for a higher deductible (e.g., moving from $500 to $1,000) can lower your premium. Choose a deductible you can comfortably afford if you need to make a claim.
- Scrutinize Optional Coverages: Do you have roadside assistance through another service (like a motor club or vehicle warranty)? Is rental reimbursement coverage essential for your situation? Eliminating overlapping or less critical add-ons can reduce your premium.
- Remember the Car You Drive Matters: The make, model, age, and safety rating of your vehicle all influence your insurance costs. Cars that are less expensive to repair or replace, have good safety records, and are less attractive to thieves typically command lower premiums. If you’re in the market for a new car, get an insurance quote ahead of time and factor that into your buying decision.
Next Steps to Saving on Insurance
News of a rate increase is never welcome, but it does provide a clear reminder of the importance of being an informed and proactive insurance consumer. By understanding the reasons behind these changes and diligently exploring your options, you can take control of your auto insurance costs.
Don’t get caught off guard by another rate increase. Start tracking your policy for free with Auto Quote Tracker, and we’ll send rate change alerts directly to your inbox.