The car insurance industry is not set in stone. It’s constantly evolving. If you’re an everyday driver who wants to stay informed on the latest and greatest happenings in the auto insurance world, we have you covered.
Our team did the heavy lifting and compiled this car insurance news roundup for August 2025.
Louisiana’s new traffic laws take effect August 1
Louisiana drivers face several key traffic law changes beginning August 1:
- Hands‑free driving law: Holding a phone while driving is now banned. Using hands‑free systems like Bluetooth or voice activation is allowed, but even non-hands‑free usage (e.g. holding a phone at a red light) can result in fines once enforcement begins in January 2026. Violations can trigger $100 tickets (up to $250 in school or construction zones).
- Left‑lane slow‑driving penalties: Drivers lingering in the left lane — even 1 mph under the limit — can be fined $150 for a first offense. Repeat violations can lead to $250 or $350 fines and possible jail time.
- Uninsured motorist consequences: New regulations require drivers without insurance to pay out-of-pocket for crash damages under $100,000 — even if they are not at fault.
- Updated window tint rules: Permitted window tint darkness has increased, allowing front side windows to have just 25% light transmission (down from 40%).
Car insurance shopping is down, but more drivers are switching policies
A new report by J.D. Power found fewer drivers are shopping for car insurance this quarter. Despite this, however, more consumers have switched auto policies.
The average premium among those who switched car insurance companies is $4,777, according to J.D. Power.
Honda is starting an insurance agency
Honda Insurance Solutions, a fully licensed insurance agency by American Honda Motor Co. will soon debut and offer insurance products to Acura and Honda customers across the U.S. It will sell various insurance options, including home and car insurance through an online platform with free quotes.
North Carolina’s minimum car insurance limits increased July 1
July marked the start of the new car insurance law in the Tar Heel State. The law mandates that drivers invest in liability coverage of $50,000 per person and $100,000 per accident for bodily injury. This exceeds the previous limits of $30,000 per person and $60,000 per accident/$25,000 property damage and is among the country’s highest minimum car insurance limits.
Those who already have coverage in North Carolina can expect their insurance company to update their policy at renewal to meet these new limits — potentially resulting in a higher rate.
Tesla is facing a car insurance class action lawsuit
Tesla Insurance Company was accused of trying to delay and reduce its car insurance payouts, causing some drivers to cover their costs out-of-pocket or simply abandon claims altogether. According to the lawsuit, Tesla allegedly failed to create and maintain adequate claim handling procedures for its policyholders.
Fake car insurance scam hits the Hispanic community in Utah
According to the Utah Insurance Department, fraudulent auto policies are being promoted to Utah’s Hispanic community through WhatsApp or word-of-mouth via fake agents. Once a victim makes a “premium payment,” they receive a counterfeit certificate of insurance. The fraud division investigates this situation to determine the person behind the scam.
Car insurance rates have risen in Massachusetts
July was the first month in the Bay State that car insurance limits were required to increase. The old law mandated $20,000 per person and $40,000 per person in bodily injury liability, $5,000 per accident in property damage liability, and $20,000 per person and $40,000 per accident in uninsured motorist liability.
Now, drivers must pay $25,000 per person and $50,000 per accident in bodily injury, $30,000 per accident in property damage, and $25,000 per person and $50,000 per accident in property damage coverage.
DisplayRide helps combat car insurance fraud in New York City with dashcams
Due to the rising issue of auto insurance fraud in the Big Apple, DisplayRide, a key player in AI-powered safety solutions, is placing dashcams in 500 rideshare vehicles and taxis to capture footage in real time. This initiative is intended to better understand how fraudulent activity occurs so that the right steps can be taken to mitigate it.
Louisiana drivers may now access auto insurance through General Motors
Now that General Motors Insurance Services, Inc. has entered Louisiana’s car insurance market, Pelican State drivers have more car insurance options — even if they don’t drive a GM vehicle. General Motors insurance policies are also available in two other states: Arkansas and Colorado.
Sources
- DiscoverJDPA.com. “Insurance shopping list report.” Accessed August 2025.
- KATC3.com. “New Louisiana traffic laws taking effect Accessed August 2025.”
- Ncdoi.gov. “Changes to the Rating of Automobile Insurance Policies.” Accessed August 2025.
- Routers.com.”Tesla’s auto insurance arm hit with consumer class action in California”. Accessed August 2025.
- Fox2now. “DisplayRide Powers Pioneering” Accessed August 2025.
- WGNO.com “General Motors Insurance” Accessed August 2025.
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