Across the US, auto insurance rates have risen an average of 26% from the previous year. That's an astronomical jump in just 12 months, and it is crushing those, like our clients, who were already living with razor thin margins. So why is auto insurance out-of-control?

Did you know that just to replace the windshield on my friend’s Ford F250 pickup costs $2300?! That was a $500 repair not that long ago. But his truck came with a number of driver aids: things like lane departure warning, emergency braking, radar cruise control. Those are GREAT features because they save lives. However, they increase the cost of a stone hitting his windshield by a factor of six. That is not an anomaly. Back into a light pole? What might have been $800 to fix a few years ago - just replace the plastic bumper cover - is now $4,000 to replace and realign back-up sensors and cameras. And just to be clear, it is not because repair shops are gouging us. The high-tech equipment to do that alignment is many tens of thousands of dollars, plus specialized labor. This inflationary trend will only increase as self-driving assistance features multiply, including more cameras, sensors, radar, LiDAR, and God-knows how many interconnected computer modules. Now let me be clear: we are NOT against this new safety tech. It really will save lives, just like airbags and seatbelts before it. But it will GREATLY increase the cost to repair vehicles, especially as they age.

*Windshield camera and sensor array on a new Tesla - a sure sign of things coming to all vehicles.*

So what do we do about this crushing cost increase? First, maximize your credit score! It may surprise you to learn that credit score does factor in to the price you are quoted for insurance. OnRamp clients are offered this assistance through free community credit-building programs, but the advice holds for everyone at every economic level. The better your score, the lower your cost of insurance.

Second, drive extra cautiously. We cannot stress enough how important it is to keep your speed under control, remove distractions (NO TEXTING!), and drive defensively. Accidents and tickets can drive your insurance prices through the roof, and hurt you for years to come. It has always been wise to drive cautiously, but never more so than now.

Third, if you are able, consider helping those who are unable to weather this inflationary burden. If you give to OnRamp, your support helps us bless people in Texas who suffer the most from these cost increases. Not only do we gift reliable vehicles to them, but we also provide a full year of free maintenance plus ongoing training and resourcing to help them thrive. Other notable donation options include the Food Bank and various Food Pantries. We have heard from many struggling families that are literally having to choose between making their car insurance payment or feeding their kids. Or consider Salvation Army, Catholic Charities, or St Vincent de Paul - all offering emergency financial assistance to families trying to keep their heads above water. Now is the time for us to be more generous than ever before!