Many drivers assume that as their car depreciates in value, their insurance premium should automatically go down. After all, if the car is worth less, shouldn't it cost less to insure?

The reality is more complicated. Your premium is made up of multiple parts — not just the value of your vehicle. While the comprehensive and collision portions of your policy (which cover damage to your own car) do typically decline over time, other components of your premium are driven by external factors like:

• Repair costs — Modern cars, even older models, are increasingly expensive to repair due to technology like sensors, cameras, and electric systems.

• Inflation — Labor and parts costs have risen significantly in the last few years.

• Medical expenses — Injury claims have grown more costly across the board.

• Litigation trends — The rise of lawsuits and settlements has pushed liability costs higher.

• Overall risk environment — Accidents, distracted driving, and vehicle thefts are all more common.

So yes, the "car portion" of your policy may be going down — but the total premium can still rise because the environment around it has changed.

One surprising contributor to rising premiums is the increased number of electric and hybrid vehicles on the road.

While they offer great benefits for the environment and fuel savings, EVs are much more expensive to repair or replace after a loss. A damaged EV battery, for example, can cost tens of thousands of dollars to replace — sometimes more than the car's total value.

Add in specialized labor, parts delays, and longer repair times (which mean insurers are also paying for longer rental car coverage), and you can see why EV-heavy areas are experiencing some of the steepest rate increases.

One of Susman's more eye-opening points: there's no such thing as "full coverage."

Many people assume that by telling their agent they want "full coverage," they're getting an all-inclusive, worry-free policy. But the term is not recognized in the insurance industry. It's just a shorthand consumers use.

A real policy is made up of specific components, such as:

• Liability — Covers damage you cause to others.

• Uninsured/Underinsured Motorist — Protects you from drivers without enough insurance.

• Medical Payments or PIP — Covers your own medical costs.

• Comprehensive — Covers damage to your vehicle from non-collision events (like theft or weather).

• Collision — Covers damage from accidents with other vehicles or objects.

• Rental Car & Roadside Assistance — Optional extras that can be added.

Understanding each piece — and adjusting limits, deductibles, or optional coverages — is key to controlling costs intelligently.

Another tried-and-true way to lower costs is to bundle your auto policy with your homeowners, renters, or condo insurance.

Bundling has been around for decades, but it's more valuable now than ever because discounts are typically a percentage, not a flat dollar amount. That means as premiums rise, so do the savings.

Even better, the discount often applies to both policies — so you can save on your home and auto coverage at the same time.

When reviewing your policies, don't just focus on price. Review limits, endorsements, and exclusions. There is no universal or boilerplate policy — every company structures coverage differently. A quote that looks "cheaper" may have removed critical protection or raised your deductible.

Always compare apples to apples when shopping around.

It's easy to assume that your insurer automatically applies every discount you qualify for — but that's not always the case.

Many discounts require proof or proactive participation, such as:

• Defensive driving courses — A simple online class can lower your rate in many states.

• Good student discount — For young drivers with high GPAs.

• Garage parking discount — Keeping your car in a garage reduces theft and damage risk.

• Vehicle tracking or anti-theft system — Cars with GPS recovery systems may earn extra savings.

• Low-mileage or pay-per-mile programs — For drivers who commute less or work from home.

These discounts vary by state and insurer — so it's up to you to ask. Don't assume your carrier will call you out of the blue to tell you how to save money.

With hybrid work schedules and remote jobs becoming more common, your annual mileage may have dropped — but has your insurer adjusted for that?

If you're now only driving to the office a few days a week, you might qualify for a significantly lower rate. Some insurers even offer verified mileage discounts, where you provide odometer readings to confirm your usage.

Others now offer pay-per-mile programs, letting you literally pay based on how far you drive. For people who work from home or drive infrequently, these can provide major savings.

Susman also explored how where you live affects what you pay — and the difference can be staggering.

According to national averages:

• Least expensive states include Maine, Vermont, Idaho, and North Carolina.

• Most expensive states are Louisiana, New York, Florida, New Jersey, and Michigan.

These variations reflect differences in state laws, claim frequency, accident severity, population density, and the number of insurance carriers competing in the market.

It's a reminder that insurance pricing is a complex ecosystem, influenced by far more than individual driving records.

Perhaps the single most impactful factor in today's rising premiums is distracted driving.

Smartphones have turned vehicles into mobile offices — and the results are devastating. Accident frequency and severity have soared in the past decade, largely due to drivers texting, scrolling, or watching content behind the wheel.

Even a two-second glance at your phone means driving the length of a football field without looking at the road when traveling at highway speeds.

The result: more accidents, higher injury costs, more claims — and higher premiums for everyone.

Susman reminds listeners that the simplest, most effective way to lower your rate is also the most obvious: drive safely.

Some drivers try to save money by dropping important coverage — like collision or uninsured motorist protection — but this can backfire badly.

A smarter approach is to adjust your deductible (the amount you pay out of pocket before insurance kicks in). Raising it from $500 to $1,000, for instance, can significantly reduce your premium without removing valuable protection.

Review your coverage annually, especially if your lifestyle changes — fewer commutes, a paid-off vehicle, or an added driver all affect your ideal coverage setup.

As Susman notes, "Insurance is not fair. You can do everything right and still end up paying more because of what others do wrong."

Because insurance works as a pooled system, your behavior is only one piece of the puzzle. Broader factors — like inflation, repair costs, weather trends, or increased accidents — all influence the pool, and thus, everyone's rates.

That said, informed consumers still have power. By:

• Maintaining a clean driving record,

• Shopping intelligently,

• Asking about discounts,

• Keeping policies bundled, and

• Reviewing coverage annually,

…you can ensure you're not overpaying — and that you're properly protected.

The auto insurance landscape is evolving quickly. Vehicles are smarter, roads are busier, and costs are higher than ever. But armed with the right knowledge, you can still make choices that protect both your car and your wallet.

As Karl Susman emphasizes, "You just need to know more than you used to — because things are more complicated than they used to be."

By taking the time to understand your coverage, stay proactive with your agent or broker, and practice safe driving, you can navigate today's complex insurance world with confidence — and maybe even save a little along the way.