You've probably noticed your car insurance bill creeping up lately, and you’re not alone. What you might be thinking is, why? Why are care insurance rates going up? Let's break down what's driving these rate hikes and — more importantly — what you can do about it. 

Remember when fixing a fender bender was straightforward? Not anymore. Today's vehicles come full of advanced technology that makes driving safer, but repairs more expensive. From sensors to automatic lights, to cameras, these are all pricey to repair. The auto repair industry is dealing with ongoing labor shortages and supply chain issues that make parts harder to get and more expensive, leading to auto insurance rates increasing. The severity of material damages in claims has risen 47% since 2020, directly impacting what you pay for coverage.

We all like to think we're good drivers, but the numbers tell a different story. Risky driving behaviors are on the rise across the board:

• Distracted driving violations up 10%

• Major speeding incidents up 10%

• Minor speeding violations up 16%

• DUI violations increased 8%

Each time someone causes an accident while texting or speeding, insurance companies pay out claims—and then spread those costs across all policyholders. That means you're literally paying for other people's bad driving habits.

Not only are there more claims, but they're getting more expensive. Bodily injury severity has increased 20% since 2020, while total loss claims (where vehicles are damaged beyond repair) are up 27%.

Another factor? More drivers are hiring attorneys for their claims. When lawyers get involved, settlement amounts typically increase.

Your personal premium isn't just affected by these industry-wide trends. Several factors determine what you specifically pay: Age - Younger drivers pay more because they’re more risky to insure. Gender - In many states, men pay higher rates than women. Driving Record - Tickets and accidents can follow you for years and increase your rates, pushing your rates up with each violation. Location - If you live in a place with higher theft or unusual weather, expect to pay more. Insurance Company - Different companies = different rates.

This last factor is where Novo comes in. Unlike traditional insurance companies that set static premiums based on broad categories, Novo's Safety Program puts you in control of what you pay.

With Novo, your monthly premium changes based on how you drive—not how other people in your demographic drive. Complete just 5 trips and 50 miles per month, and Novo will calculate your personal Safety Score by measuring specific behaviors like speeding, rapid acceleration, and hard braking.

Drive safely, and you could save up to 40% compared to traditional insurance. Your premium becomes more like an electricity bill—reflecting your actual usage and behavior rather than arbitrary factors you can't control.

Is car insurance inflation real? Absolutely. Car insurance rates have increased at a faster pace than general inflation, with a 55.4% increase since February 2020.

Why is my car insurance going up for no reason? There's always a reason—but it might not be about you personally. Severe weather events, rising repair costs, and increased claim severity all contribute to rate hikes, even if your driving record is spotless.

When will car insurance go down? Traditional insurance rates probably won't decrease significantly anytime soon. But with usage- based insurance like Novo, you can lower your personal rate immediately by driving safely.

Car insurance doesn't have to be a mysterious, ever-increasing expense. With Novo's Safety Program, you get transparency into how your rates are calculated and the power to control what you pay. Rather than subsidizing bad drivers or paying based on outdated demographic categories, Novo lets you pay for how you drive and how much you drive. You're not just buying insurance— you're joining a community of safe drivers committed to making roads safer for everyone. Ready to stop paying for other people's accidents? Take control of your car insurance with Novo's Safety Program and turn safe driving into real savings every month. Get car insurance rates based on how you drive.