From the bustling city of Providence to the Newport coastline, Rhode Island has a lot to offer. For most residents of the Ocean State, a car is an essential part of daily life. Unfortunately, the cost of that necessity is increasing for over 60,000 policyholders.
What’s Happening?
Progressive Insurance was recently approved to increase its auto insurance premiums by 5.8% for Rhode Island drivers. This change is scheduled to take effect on August 28, 2025 and will impact a total of 65,640 policyholders.
This change is projected to increase total written premiums across the state by nearly $5.8 million, or roughly $88 per policy. While the news of a rate hike is never welcome, understanding the reasons behind it can help you navigate the changing landscape of auto insurance.
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What’s Behind the Change?
Why do auto insurers increase their rates? It’s a common question, and the answer is often complex. Insurance companies are businesses, and their rates are determined by a careful calculation of risk and cost. When the cost of paying claims goes up, so too must the price of premiums to ensure the company can remain financially stable and continue to pay out claims for its policyholders. Several factors contribute to these rising costs, and it’s not always just about your personal driving record.
The current economic climate, including inflation, plays a significant role. The cost of everything from car parts to labor for repairs has been on the rise. Modern vehicles are also more complex, equipped with advanced technology like sensors and cameras that make them safer but also more expensive to repair after an accident. This “computers on wheels” phenomenon means a simple fender-bender can result in a much higher repair bill than it would have a decade ago.
In addition to inflation, litigation and social inflation— the rising cost of legal and medical services related to accidents— also drives up expenses for insurers. The more expensive it is for an insurance company to pay a claim, the higher your premiums will be. Even factors like the frequency and severity of accidents in your area and the number of uninsured motorists can affect rates for everyone.
How to Lower Your Car Insurance Rates
While some factors are out of your control, there are several proactive steps you can take to offset these increases and potentially lower your car insurance rates.
The most effective strategy is to shop and compare quotes. Don’t assume your current insurer still offers the best rate for your situation. Prices can vary significantly between different companies, so getting quotes from multiple providers can save you a substantial amount of money.
Beyond that, here are some other tips to consider:
- Maintain a clean driving record: Accidents and traffic violations are major red flags for insurers and will almost always lead to a rate increase.
- Bundle your policies: Many companies offer discounts if you combine your auto insurance with other policies, such as homeowners or renters insurance.
- Increase your deductible: A higher deductible means you’ll pay more out of pocket if you have a claim, but it will lower your monthly or annual premium. Just be sure you can comfortably afford the deductible amount.
- Ask about discounts: You may be eligible for discounts you don’t even know about, such as for being a good student, having a safe vehicle with certain features, or for being a veteran or a member of a specific professional organization.
- Consider a usage-based program: Some insurers, including Progressive, offer programs that track your driving habits via a mobile app or device. If you’re a safe, low-mileage driver, you could be rewarded with a lower rate.
Lock In Your Insurance Savings
The reality is that auto insurance rates are dynamic and subject to change based on a variety of economic and social factors. Progressive’s 5.8% rate increase in Rhode Island is a reminder that it’s crucial to stay informed and vigilant about your policy.
Fortunately, Auto Quote Tracker can help you stay ahead of these changes. When you sign up for tracking, you will get notified when your insurance rates are about to change, giving you a head start on shopping around for a better deal.
