The cost of cars could keep that upward push on deductibles. Automakers' average asking price for a new car has been above $50,000 since April and was nearly $52,000 in November, according to Cox Automotive. More people are taking out longer loans, with some monthly payments near $1,000, making the ongoing costs of car ownership a burden for many.
Raising a deductible has risks. Drivers who do it have to determine whether they can afford to pay the higher amount if an accident occurs. If they can't, &#34;you effectively do not have insurance,&#34; Glombicki said.
Over one-quarter of people said they did not have enough money in savings to cover their deductible, according to a survey from The Zebra.
'Customer pay' is on the rise
A $1,000 deductible used to be a rarity but now it's common, said Aaron Schulenburg, executive director of the Society of Collision Repair Specialists. He's heard of $2,000 deductibles these days too.
Schulenberg sees other ways drivers are shouldering more responsibility to tamp down on insurance costs. He's heard of more incidents where drivers are paying their deductible along with an out-of-pocket portion the insurer did not pay.
He's also heard of more customers handling the entire amount themselves. &#34;Customers are covering more and more of their repairs&#34; at collision repair shops, amid the rise of what he referred to as &#34;customer-pay&#34; incidents.
That's where the customer pays the body shop directly while the insurance company never gets involved with a claim - and may not even know of the incident.
Seven percent of drivers said they didn't file a claim because they worried about that impacting their premium, according to a J.D. Power survey in October.
Mike Anderson, a consultant to repair shops, vehicle manufacturers and consumers, sees the trend among a group of 200 auto-repair businesses who pool information. This year, almost 20% of repair orders are now paid completely by the customer instead of the insurer, he said. That's up from 12.7% in 2024 and from 7% to 8% three or four years ago, he said. &#34;For the foreseeable future, customer pay is going to stay pretty strong,&#34; Anderson said.
Here's one risk of customer pay: Some price-conscious drivers may be tempted to cut corners by buying parts that may be cheaper, but aren't as roadworthy. &#34;When paying out of pocket, they tend to want to price shop,&#34; and potentially look online to find replacement parts, said Anderson.
Another risk: Drivers skip the repair altogether. In some cases, a driver may regret not addressing their busted back-up camera or non-working lane change sensor if a crash happens, Anderson said.
The unaddressed damage shows when cars come in for other service, Schulenberg said. &#34;I think you are going to see more of that.&#34;
Mandell, at Mitchell International, has already had a personal, upfront look at the trade-offs drivers are making. Last year, a driver backed into his 12-year-old Yukon XL at a stop sign and drove off. Replacing the gouged front bumper was a $1,100 job and Mandell would've paid the first $500.
He was already bracing for a 25% premium increase because his teen son now has a learner's permit. Then another 25% increase when his son gets his license. So filing a claim for the bumper wasn't worth it, he said.
Though he did end up paying to fix the SUV's transmission, the front bumper doesn't look great, Mandell said.  &#34;We chose to spend money to maintain the vehicle as opposed to cosmetics,&#34; he said.
There are more drivers on the road with no insurance - or too little
It's not always a choice of insurance or no insurance. Increasingly, it's a matter of having too little coverage. In 2023, over one in six drivers, 18%, had too little insurance to cover the cost of damage, according to the Insurance Research Council. The rate has climbed since 2017.
Ann Baddour is the director of  the Fair Financial Services Project at Texas Appleseed, a nonprofit organization focused on social, economic and racial justice issues in the Lone Star state. Baddour has watched Kelly's struggles to find coverage. She's investigated how there are more police tickets issued to drivers who lack auto coverage in Houston's lower-income ZIP codes. Rising premiums play into uninsured rates, she said.
Yet other insurance practices - like using the driver's credit score to influence their premium price - worsen the problem, as she sees it. Insurers in most states, including Texas, allow auto insurers to consider credit scores in their coverage and pricing decisions.
&#34;It almost seems like there's a disconnect because we want people to have insurance, and yet it's being priced in a way that if a person stumbles they're creating such an obstacle to get back into the market,&#34; Baddour said.
The riskiest bet drivers are making to save money: 'premium avoidance'
While there are legitimate ways for drivers to shave their premium costs - like shopping around for a better policy - there are also illegal ways, like lying to insurance companies about important facts. That would include misleading the insurer about how much the person drives their car. Or where the car is parked at night. Or who is the real day-to-day driver.
This type of &#34;premium avoidance&#34; is on the rise, according to the National Insurance Crime Bureau, an insurance industry-funded nonprofit organization that works with law enforcement to fight fraud.
There was a &#34;steady increase in premium avoidance&#34; between 2010 and 2019, the organization said. It dropped off during the pandemic, when people drove less - and peaked again in 2024.
&#34;It gets driven by economic issues. When people are struggling, they are looking for ways to save money&#34; said Jessica Rust, the organization's director of intelligence and analytics.
Insurers price fraud risks into their premiums, Rust said.  &#34;We're all paying more to cover the fraud that occurs.&#34;
Some drivers' misrepresentations to their insurance companies may become law enforcement cases, Rust noted. In other instances, the carriers may cancel a person's coverage - and that would be a major red flag when the driver shops for future coverage. She wonders if people appreciate the risks.
Looking ahead, Rust is bracing for premium avoidance to stay elevated. &#34;I wouldn't expect it to drop off any time soon.&#34;
'Shaken confidence'
Auto insurance is supposed to be a financial firewall when things go wrong on the road. By bearing more risk, consumers' trust may be getting tested - at a time when they really want to understand the value they're getting for their money.
The rise of &#34;customer pay&#34; and out-of-pocket payments above a deductible can shake drivers' confidence, said Schulenberg, with the Society of Collision Repair Specialists. They may be caught between repair experts saying one thing and the insurer saying another. That casts doubt about what's the right thing to do throughout the entire repair process.
It may also force drivers to ask a question, he added:  &#34;Why am I obligated to pay for insurance if insurance isn't paying for me?&#34;
What personal-finance issues would you like to see covered in MarketWatch? We would like to hear from readers about their financial decisions and money-related questions. You can write to us at readerstories@marketwatch.com. A reporter may be in touch to learn more. MarketWatch will not attribute your answers to you by name without your permission.
-Andrew Keshner
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(END) Dow Jones Newswires
12-23-25 1635ET

CARS

<p>The rising cost of cars and insurance deductibles is leading to more uninsured drivers and unfixed vehicle damage. With new car prices averaging over $50,000, many are taking longer loans, increasing financial burdens. Higher deductibles mean some drivers effectively lack insurance. More drivers are paying out-of-pocket for repairs, with 20% of repair orders now customer-paid. Uninsured rates are rising, with 18% of drivers underinsured in 2023. Practices like using credit scores for insurance pricing exacerbate the issue, creating barriers for drivers to maintain adequate coverage.</p>

More uninsured drivers, more unfixed damage: -2-