SOVRN Capital president on rising car insurance: 'Our premiums went from $162 to $579 a month'

Eric Rice, President of SOVRN Capital, has expressed concerns over the financial impact of legally mandated auto insurance. He said that his family's premiums increased by over $400 a month after adding a teenage driver. Rice referred to this situation as a "financial trap" in a statement made on X.

"We just added our 16 year old to the car insurance. Our premiums went from $162 to $579 a month," said Rice. "That's $400 more a month and $4800 a year to drive a car. We cannot say ‘no' and not pay because we would be in violation of the law. Legally mandated insurance is a scam."

According to Amwins' 2025 State of the Market report, insurance costs in the United States are rising due to persistent inflation, higher claims frequency, and increasing loss severity across both personal and commercial lines. Auto insurance carriers are particularly affected by escalating repair costs, medical expenses, and litigation trends. These factors are contributing to significant premium increases nationwide.

Investopedia reports that as of 2024, personal injury attorneys and aggressive legal advertising are also contributing to rising car insurance premiums across the country. Insurers say that increased litigation and larger claims are driving up legal costs and forcing premium hikes to offset losses. These legal pressures are especially strong in states with fewer limits on damages or attorney fees.

A 2025 article from Carrier Management indicates that auto insurers are raising premiums partly due to increased costs from litigation funded by third-party investors. The article highlights that some carriers have reported legal costs rising by as much as 20% annually. Industry leaders say this trend underscores the need for greater transparency and reform in the legal funding process.

Rice is a veteran corporate strategist with experience across finance, technology, and business development. He has spoken publicly about structural inefficiencies that raise costs for consumers, including mandatory systems and regulatory burdens. His leadership roles span high-growth sectors where he frequently engages with risk management and compliance issues.