This Way to Save Money on Car Insurance Has 3 Big Drawbacks. Here's Why You Should Do It Anyway

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• Telematics car insurance uses actual driving data to reward safe drivers with discounts.
• State Farm and Nationwide rank as the best car insurance companies for this special type of discount -- with savings up to 30% to 40% based on location and driving data.
• Drivers must be comfortable sharing their driving data, and be aware that some car insurance companies' mobile apps are poorly rated.

Car insurance costs went up by over 20% per year, according to recent survey data. Many drivers are reeling from the rapid increase in car insurance premiums. Instead of a barely noticeable monthly bill that fades into the background of everyday life, car insurance is becoming a major cause of financial stress.

One of the most frustrating things about higher car insurance costs is that they often feel unfair. Drivers might be asked to pay higher auto insurance premiums even if they didn't get into a crash and don't violate the speed limit.