For drivers across the Commonwealth, staying ahead of car insurance costs is a financial priority. That’s why any news of a premium adjustment, especially from a major carrier like Progressive, warrants a closer look.
What’s Happening?
Progressive Insurance was recently approved to increase rates by 4.7% for Virginia drivers. As the 3rd biggest auto insurance carrier in the state, this change will have a major impact on drivers, affecting over 150,000 policyholders. Overall, it’s estimated to raise total written premiums by over $7 million.
Fortunately, this adjustment doesn’t go into effect until January 1, 2026. That means you have plenty of time to shop around before your rates go up.
Shop now and save!
Why Are My Car Insurance Rates Going Up?
It can be frustrating to see your premium increase, especially if your driving record is spotless. However, rate adjustments are rarely about your individual driving habits. More often, they are a response to broad economic trends that affect the entire insurance industry. Here are the primary factors driving these changes:
The Rising Cost of Everything (Inflation): The same inflationary pressures you see at the grocery store also impact the insurance world. The cost of medical care for injuries sustained in accidents has risen sharply. Likewise, the price of new and used cars has increased, meaning the value of vehicles that need to be replaced is higher.
Complex Cars, Costly Repairs: Today’s vehicles are packed with sophisticated technology like sensors, cameras, and advanced driver-assistance systems. While these features make us safer, they also make repairs significantly more complex and expensive. A minor fender-bender that once required a simple bumper replacement might now involve costly recalibration of sensitive electronics.
Supply Chain and Labor Shortages: Lingering effects from the pandemic have created a challenging environment for vehicle repairs. A shortage of both skilled auto technicians and necessary car parts means that repairs take longer and cost more in labor, driving up the overall expense of a claim.
Trends on the Road: Insurers constantly analyze accident data. If a specific region sees an uptick in the frequency or severity of accidents, it signals a higher risk. This can lead to rate adjustments for everyone in that area to ensure the insurer has enough funds to cover these more frequent and costly claims.
What to Do Before the Rate Change Goes Into Effect
This rate increase doesn’t mean you have to accept a higher bill. Here are four concrete steps you can take to mitigate the impact and potentially find significant savings.
1. Act Before the Deadline: The Early Shopper Advantage
The most critical piece of advice is to act before January 1, 2026. You have a golden opportunity to shop for a new policy now, at today’s rates. Insurance quotes are typically valid for 30 to 60 days. By securing a new policy before Progressive’s increase takes effect, you can lock in your premium for the next six or twelve months, effectively shielding yourself from the rate hike.
2. Become a Savvy Shopper
The single most powerful tool at your disposal is comparison shopping. The cost for the exact same coverage can vary by hundreds of dollars from one company to another.
Get at least three quotes: Don’t assume your current insurer is the cheapest. Use a comparison tool to get quotes from a mix of national and regional carriers.
Compare apples to apples: When you get quotes, ensure that you are using the exact same coverage limits and deductibles across the board. This is the only way to make a true price-for-price comparison.
Use an independent agent: An independent insurance agent can be a great resource. They work with multiple insurance companies and can do the shopping for you, saving you time and potentially uncovering better rates.
3. Conduct a Policy Check-Up
Use this as a chance to review your policy and make sure it still fits your needs.
Review your deductibles: Your deductible is the amount you pay out-of-pocket on a claim before your insurance pays the rest. Raising your comprehensive and collision deductibles (for instance, from $500 to $1,000) can lower your premium significantly. Just be sure you have the higher amount saved and readily available in case of an accident.
Evaluate coverage on older cars: If you drive an older car with a low market value, paying for collision and comprehensive coverage might not be cost-effective. You could be paying more in premiums than the car is worth. A good rule of thumb is if your car is worth less than 10 times the premium you pay for this coverage, it may be time to drop it.
4. Hunt for Every Discount
Insurance companies offer a wide variety of discounts, but they often don’t apply them automatically. You need to ask. When speaking with an agent, inquire about these potential savings:
Bundling: Combining your auto insurance with a homeowners or renters policy from the same company is often the biggest discount available.
Safe Driving: Do you have a clean record with no accidents or moving violations? You should be rewarded for it. Many companies also offer usage-based insurance programs (telematics) that monitor your driving habits and offer substantial discounts for safe behavior.
Good Student: If you have a young driver on your policy who maintains good grades, you could be eligible for a significant discount.
Affiliations: You may qualify for a discount through your employer, university, or other professional or social organizations.
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