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Stablecoins are digital currencies that are designed with the goal of maintaining a fixed, or stable, value. They are structured to function much like fiat currencies, but exist instead on the blockchain. This brings with it several benefits in terms of accessibility, usability, and speed.

There are multiple types of stablecoins, each defined by the mechanism used to maintain the one-to-one value peg to their respective fiat currencies. With broader institutional adoption of stablecoins only just beginning, however, there are still risks to consider with these relatively new digital currencies.

What Are Stablecoins?

Stablecoins are digital coins that maintain a stable value. Most stablecoins are pegged to popular fiat currencies like the U.S. Dollar, Chinese Yuan, or the Euro. Some are pegged to commodities, like gold, too.

How Stablecoins Differ From Other Cryptocurrencies

In theory, a stablecoin could have its value linked to just about anything. However, stablecoins pegged to a fiat currency are the most common. As such, when someone uses the term “stablecoin,” they are most likely referring to fiat currency coins.

In terms of value, the most stable cryptocurrency will, by definition, be a stablecoin. Some of these coins see their values fluctuate by small amounts, but they tend to correct back to their normal value in short order.

If there is any volatility in the value of a specific stablecoin, it’s likely much less than that seen in other types of cryptocurrencies.

The Purpose of Stablecoins in the Crypto Ecosystem

Stablecoins have a variety of potential use cases, but the main idea behind stablecoins is to create a cryptocurrency that is not subject to the volatility experienced by other cryptocurrencies, like Bitcoin and the many hundreds of altcoins. That, in some shape or form, could provide a sense of stability to the crypto ecosystem.

Key Benefits and Drawbacks

Stablecoin transactions tend to be faster, more efficient, and cheaper than conventional payment or money transfer systems. They may allow financial institutions that leverage them to offer lower fees in certain instances as well.

More broadly, stablecoins’ low cost and accessibility to those with internet access or a smartphone may allow unbanked or underbanked groups broader access to financial services, assuming they reside in an area where these cryptocurrencies are permitted. These coins also benefit from the security of blockchain technology.

Stablecoins could also be used as a store of value, as they are often pegged to a currency or commodity.

Conversely, as for drawbacks, stablecoins also don’t have the same consumer protections in place that traditional banks do. Users will need to hold their stablecoin balance via any number of crypto storage methods and the cryptocurrency wallet of their choice.

There could also be a potential lack of transparency regarding their reserves of stablecoins. Auditors must verify that reserve requirements are met, and it’s important to know that these third-party groups are reputable, as well. In other words, it can sometimes be difficult to know whether the company behind the coin actually holds one dollar for each dollar-backed stablecoin.

Why Stablecoins Matter in the Digital Currency Landscape

A stablecoins become more common in the crypto and financial spaces, it’s important to know why, exactly, they matter.

Addressing Volatility in Crypto Markets

As noted, they can play a stabilizing role in the broader markets. They’re stable, as much as a cryptocurrency likely could be. That doesn’t mean that they’re immune from volatility, of course, but stablecoins are designed to be, well, stable. As such, they can provide a sort of ballast in terms of volatility to the larger crypto space.

Use Cases and Real-World Applications

One of the primary use cases and applications of stablecoins, as of 2025, is that they can help enable fast and cheap global remittances, or cross-border transactions.

Traditional bank transfers typically take anywhere from three-to-five business days and can cost anywhere from a few dollars to dozens of dollars. International transfers tend to be the most expensive.

Stablecoin transactions can be confirmed within minutes, or less, and at very little cost. Two people with stablecoin wallets can transact with each other from anywhere in the world at any time without the need for a third-party intermediary.

Additionally, stablecoins could be used in other areas, such as running payroll for international work, or even as something that could dampen volatility in crypto markets, as they tend to maintain a fairly level valuation.

Market Growth and Adoption Trends

Looking forward, it’s likely that stablecoins will continue to grow in terms of usage and adoption in the broader financial space. Within 18 months, total issued stablecoin value more than doubled to $250 billion from $120 billion between early 2024 and mid-2025^[1], and also, more and more companies are looking to adopt or launch stablecoins.

As of September 2-25, 13% of financial institutions around the world use them, and 54% of those that do not plan to adopt them within a year.^[2]

The 4 Types of Stablecoins

Generally, there are four types of stablecoins: fiat-backed, commodity-backed, crypto-collateralized, and algorithmic stablecoins.

1. Fiat-Backed Stablecoins

Some of the most widely-used stablecoins today use a centralized model and back new token issues with fiat currency at a one-to-one ratio. U.S. Dollar Coin (USDC) and Tether (USDT) are examples of this type of coin.

2. Commodity-backed Stablecoins

Some stablecoins are backed by other assets, like gold. The overall functions remain the same, but the value is tied to the current price of gold, with physical gold used as collateral.

3. Crypto-collateralized Stablecoins

Some other stablecoins that use a decentralized model, like DAI, have grown in popularity in the crypto community. Rather than maintaining their stable value through fiat reserves, users can lock up cryptocurrency as collateral for borrowing DAI on the Maker DAO platform.

There are also a growing number of decentralized lending platforms that allow users to deposit DAI or other stablecoins and earn interest. Network consensus, rather than a centralized team, governs DAI (similar to how Bitcoin works), which maintains a value equal to one U.S. dollar.

4. Algorithmic Stablecoins

Decentralized algorithmic coins are a newer technology and differ from the other types of stablecoins in that they don’t involve any type of collateral backing. Instead, they rely on smart contracts to maintain their price.

Comparing Stablecoins Strengths and Weaknesses

The different types of stablecoins are designed for different reasons, and therefore, can serve different purposes. In other words, they may each have strengths and weaknesses, depending on what a user wants to do with them.

So, depending on what a user wants or hopes for out of a stablecoin, those strengths or weaknesses may revolve around a specific coin’s relative stability, its risks related to regulation and centralization, its liquidity, and perhaps even its specific complexity.

Factors Influencing Stablecoins Price Behavior

Getting more granular, there are a lot of things to understand as to how stablecoins’ value is maintained.

How Stablecoins Maintain Price Stability

Stablecoins use a variety of means to maintain their price stability, and that includes various forms of collateralization, as discussed, which means they’re “pegged” to or “backed” by various forms of fiat currency, crypto, or commodities. Smart contracts, housed on blockchain networks, automatically keep stablecoin supply in check by executing trades or burning coins, which evens out with dynamic demand, and keeps values relatively stable.

Algorithmic Price Controls and Protocols

For stablecoins that maintain their value via algorithmic price control mechanisms, the process is similar. An algorithm creates or burns (destroys) coins to maintain a certain level of total coins that reaches a level of equilibrium with supply and demand. That algorithm, accordingly, maintains the stablecoins’ value. Again: Similar to smart contracts, but slightly different.

The Role of Arbitrage and Redemption in Stabilization

Crypto arbitrage, or the act of buying and selling the same stablecoins to try to profit from price differences, along with redemption, or trading in a stablecoin for its equal value in fiat currency, may help level price differences across coins. In effect, these two market factors or mechanisms, in conjunction with algorithmic or smart contract-powered price controls, can help keep a stablecoin’s value steady.

Importance of Transparency and Auditing

Each stablecoin is different, and there can be varying levels of transparency, and auditing associated with each stablecoin. Those differences can make a difference in terms of demand for a specific coin. If a stablecoin A is less transparent or somewhat riskier than stablecoin B, for instance, which would you prefer to use?

Reserve Quality, Transparency, and Auditing

A stablecoin’s reserve can also play a role in influencing its value and behavior. We’ve discussed how some stablecoins are backed by commodities or fiat. If a stablecoin is backed by a low-quality or low-value commodity, such as dirt, while another is backed by gold, that can create some divisions.

Further, there is likely to be some regard for how those reserves are tracked or audited, and how a stablecoin’s value matches up with its underlying reserve. All of that can come into play for stablecoin users.

Regulatory Environment and Evolving Legal Frameworks

The rules are changing around stablecoins, and each country will have its own way of dealing with them. That can and will also have an effect on supply, demand, and values.

Market Confidence, Track Record, and Reputation

There’s been a long-standing issue in the crypto space surrounding scams and rug-pulls, and that can give some users pause when deciding to utilize one coin versus the next. Accordingly, market confidence, track record, and reputation related to a specific coin are important factors.

Liquidity, Adoption, and Technical Reliability

Further, how widely used and reliable a stablecoin is perceived to be can also be important. Stablecoin holders will want to know that they can get their money back — that is, liquidate their holdings if and when they choose to do so — without much effort or friction.

Common Risks and Failure Scenarios

It’s possible that stablecoins could lose their value due to depegging, which is when the price of a stablecoin moves more substantially away from its pegged value. This could result from loss of confidence in the stablecoin or its reserves, panic selling, operational failures, and other factors. There are a number of things that could go wrong, and with the crypto space still evolving and still less regulated than the financial space, users should know that risks exist.

Stablecoins and Their Relationship With Traditional Finance

We’re still in the early stages of stablecoins’ integration into the broader, traditional financial space, and it’s evolving right before our eyes. But there are some use cases to be aware of, such as using DeFi blockchain technology to make loans, and more.

Stablecoins in Financial Trading and DeFi

Stablecoins are becoming a necessary component of the decentralized finance (DeFi) space. Holders can make transactions like peer-to-peer lending — where people make direct loans to each other via blockchain — with stablecoins.

Some users might prefer this option to other cryptocurrencies, which could hurt their rate of return if the price goes down. A stablecoin’s steady value may also add an element of confidence to financial arrangements.

Integration WIth Existing Financial Systems

Stablecoins and crypto are again being increasingly adopted by traditional and long-standing financial institutions. As such, they’ll likely become further ingrained and integrated into the broader financial space.

Centralization vs. Decentralization Considerations

One thing that attracts many users to the crypto space is its decentralized nature, which may allow them to access financial services more easily — from their smartphone or computer — and with fewer and lower fees.

Stablecoins could become more centralized as they’re adopted by bigger players and further integrated into the financial industry. However, this could also allow these groups to offer lower fees in some cases and increase accessibility since fewer intermediaries, if any, may be needed for transactions.

Regulatory Oversight and Compliance Challenges

There have been new rules and regulations floated to help smooth the path for stablecoins’ wider adoption in the financial space. The GENIUS Act, specifically, tasks the Treasury Department to encourage stablecoin innovation and adoption, and lays out which existing laws and regulations that they may be subject to. This is all still being worked out, but in the U.S., it is a change in how the federal government has, in the past, viewed most cryptocurrencies.^[3]

Practical Applications of Stablecoins for Businesses and Individuals

There are numerous potential applications for stablecoins.

•   Cross-border payments and remittances: Money, in its numerous forms, is designed to store and transfer value. Stablecoins can do the same, and perhaps with less associated costs. It can be expensive to make international payments or transfers, but it’s possible stablecoins could provide an alternative.

•   Treasury protection in high-inflation economies: It’s possible that stablecoins could provide some protections from inflation since they’re often backed by treasuries, particularly in places where inflation is a very serious problem. While we’ve had issues in the U.S. related to inflation in recent years, some countries have much higher rates of inflation, and stablecoins could provide ways to alleviate it.

•   Payroll solutions for remote teams and contractors: As discussed, stablecoins may prove useful in facilitating international payments. That could be a boon for business owners operating remote teams, or working with international freelancers or contractors.

•   Ecommerce and settlement: Stablecoins could prove a viable alternative to simple fiat currencies, like U.S. dollars, in certain cases to facilitate other types of purchases.

•   Addressing volatility in crypto markets: As mentioned, stablecoins may serve as a ballast in the crypto markets, lowering overall volatility.

•   Promoting financial inclusion for the unbanked and underbanked: There are a significant number of “unbanked” individuals in the U.S., or those who either choose not to use traditional banking services, or otherwise can’t access them. Stablecoins could bring those people into the fold, or prove a way for them to access the financial space.

The Future of Stablecoins

The future of stablecoins is still up in the air, but they do have momentum.

Emerging Trends and Innovations

Stablecoins are trending, as more and more financial institutions are starting to use them to facilitate transactions, and some will likely issue their own. As that happens, innovation will occur, as well, as users find new use cases or other ways to take advantage of stablecoins going forward.

Potential Impact on Global Finance

We don’t know what’s going to happen, but stablecoins could potentially have a significant impact on global finance. If they do prove successful at offering a quicker and more accessible payment system that can be used worldwide, the implications are wide-ranging.

The Takeaway

Stablecoins are cryptocurrencies that are designed to keep their value stable in relation to another asset — most commonly, an existing fiat currency, such as the U.S. dollar. Issuing these coins on a blockchain may help remove certain barriers to entry associated with traditional, legacy financial systems at large. It also has the potential to provide greater access to financial services to those who may not otherwise have the opportunity to participate in the world of finance.

SoFi Crypto is back. SoFi members can now buy, sell, and hold cryptocurrencies on a platform with the safeguards of a bank. Access 25+ cryptocurrencies, such as Bitcoin, Ethereum, and Solana, with the first national chartered bank to offer crypto trading. Now you can manage your banking, investing, borrowing, and crypto all in one place, giving you more control over your money.

FAQ

What is the most stable cryptocurrency?

Theoretically, any stablecoin should be stable; most of them see their values fluctuate very little on a daily basis. The decentralized and algorithmic stablecoins have experienced somewhat more volatility than the centralized coins, historically.

What are some examples of stablecoins?

There are numerous stablecoins on the market, including DAI, Tether, Binance USD, USD Coins, and Paxos.

Can stablecoins offer protection from inflation?

It’s possible that stablecoins could provide some protections from inflation since they’re often backed by treasuries, particularly in places where inflation is a very serious problem.

About the author

Brian Nibley

Brian Nibley is a freelance writer, author, and investor who has been covering the cryptocurrency space since 2017. His work has appeared in publications such as MSN Money, Blockworks, Business Insider, Cointelegraph, Finance Magnates, and Newsweek. Read full bio.

Photo credit: iStock/tomap49

SOCRYP-Q325-107

As the most widely recognized and adopted cryptocurrency, Bitcoin’s price can in many ways serve as a barometer for the health of the entire crypto market. With the highest market cap of all cryptocurrencies by a wide margin, it has the potential to lift the prices of other cryptocurrencies in the wake of its own price increases, and likewise pull broader market prices down when its own numbers fall.

The price of Bitcoin (BTC) has been on a wild ride since it launched over 14 years ago, on January 3, 2009. Those who bought Bitcoin early have seen its price rise significantly, surpassing $124,000 for a brief moment in mid-2025, following a steep decline in 2023. However, the fluctuations in Bitcoin’s price — as with all forms of crypto — have also led to considerable losses.^[1]

A review of Bitcoin price history shows plenty of ups and some significant downs, but despite the risks, crypto fans continue to seek it out. Like other cryptocurrencies, Bitcoin’s price is largely driven by sentiment, and those who buy in must be comfortable with the elevated risk that buying and selling crypto entails.

Bitcoin Price History Over the Years

A glance at the Bitcoin historical price chart illustrates the cryptocurrency’s steep rise since its inception. It’s equally clear that the path to Bitcoin’s current price has not always been a smooth one, and that it may continue to see fluctuations over time.

While some enjoy comparing Bitcoin’s price history to past speculative manias like Beanie Babies circa 1995 (or the infamous tulip bubble circa 1636), speculation is only one factor in any given Bitcoin price fluctuation.

Over the years, one pattern can be seen in Bitcoin’s prices. Every four years, the network undergoes a change called “the halving,” where the supply of new BTC rewarded to Bitcoin miners gets cut in half. This has happened four times so far:

•   2012: 50 BTC to 25 BTC

•   2016: 25 BTC to 12.5 BTC

•   2020: 12.5 BTC to 6.25 BTC

•   2024: 6.25 BTC to 3.125 BTC2

The next Bitcoin halving is set to occur in March or April of 2028.

In each instance, the price of BTC reached new record highs in the year or so following each halving event. This was typically followed by a Bitcoin bear market. After a period of consolidation, the price then tended to move upwards again in advance of the next halving, though there’s no guarantee that this may occur in the future.

While the price of BTC can hardly be considered predictable, it’s useful to view the chapters in the Bitcoin price history and what it may mean for potential buyers, sellers, and holders.

Bitcoin Price History by Year (2014-2025)

Source: Yahoo Finance, CoinDesk

Bitcoin Price 2009-2012: $0 to $13.50

Early Bitcoin price history shows relatively modest growth. As buzz around Bitcoin grew, more crypto-curious individuals began to pay attention to this seemingly novel idea and its potential as a serious vehicle for growth.

2009: $0

On October 31, 2008, the pseudonymous person or group known as Satoshi Nakamoto published the Bitcoin white paper. This paper introduced a peer-to-peer digital cash system based on a new form of distributed ledger technology called blockchain.

Then, on January 3, 2009, the Bitcoin network went live with the mining of the genesis block, which allowed the first group of transactions to begin a blockchain. This block contained a text note that read: “Chancellor on Brink of Second Bailout for Banks.” This referenced an article in The London Times about the financial crisis of 2008 – 2009, when commercial banks received trillions in bailout money from central banks and governments. This event helped mark Bitcoin’s original price at $0.

For this reason and others, many suspect that Nakamoto created Bitcoin, at least in part, in response to the way the events of those years played out.

2010: $0.00099 to $0.30

Bitcoin’s price increased nominally for most of 2010, never surpassing the $1 mark. The first recorded price at which Bitcoin was exchanged was equivalent to roughly one-tenth of a cent, and the year closed with a price near $0.30. The first notable price jump would not be far off, however.

2011 – 2012: $1 to $13.50

Real adoption of Bitcoin began to take place about two years after it was first introduced, and a major Bitcoin price surge happened for the first time.

In 2011, the Electronic Frontier Foundation (EFF) accepted BTC for donations for a few months, but quickly backtracked due to a lack of a legal framework for virtual currencies.

In February of 2011, BTC reached $1.00 for the first time, achieving parity with the U.S. dollar. Months later, the price of BTC reached $10 and then quickly soared to $30 on the Mt. Gox exchange. Bitcoin had risen 100x from the year’s starting price of about $0.30.

By year’s end, though, the price of Bitcoin was under $5. No one can say for sure exactly why the price behaved as it did, especially back when the technology was so new. It could be that 2011 marked the launch of Litecoin, a fork of the Bitcoin blockchain — and other forms of crypto began to emerge as well — signaling greater competition.

In 2012, of course, Bitcoin saw its first halving, from a 50-coin reward for mining BTC to 25 coins. This set the stage for its precipitous growth. But the pattern of an 80% – 90% correction from record highs would continue to repeat itself going forward, even as much more Bitcoin liquidity would come into being.

Recommended: Is Crypto Mining Still Worth It in 2025?

2013 – 2016: $13 to $1,000

The period between 2013 and 2016 would mark the beginning of Bitcoin’s ascension as a cryptocurrency to be taken seriously. Pricing increased dramatically during this time, as more people began to take notice of Bitcoin’s potential.

2013: $13 to $1,193

In 2013, the EFF began accepting Bitcoin again, and this was the strongest year in Bitcoin price history in terms of percentage gains. Starting at $13 in the beginning of the year, the price of Bitcoin rose to almost $250 in April before correcting downward by over 50%. The price consolidated for about six months until another historic rally in November and December of that year, when the price hit $1,193.

This increase saw Bitcoin’s market cap exceed $1 billion for the first time ever. The world’s first Bitcoin ATM was also installed in Vancouver, allowing people to convert cash into crypto.

While the price spiked above $1,000 again briefly in January 2014, it would be nearly three years before the Bitcoin price would reach four digits again.

Amidst all this volatility was a surge in crypto interest, with Dogecoin being one of the more notable coins to emerge at that time. Though considered a meme coin, Dogecoin still exists.

2014 – 2015: $760 to $430

While the cryptoverse quietly exploded in this time period, with technological innovations that permitted a move away from proof-of-work to the less resource-intensive proof-of-stake, as well as the emergence of smart contracts, and the real foundations of decentralized finance — Bitcoin was relatively quiet.

While 2014 opened at about $760, the price overall held steady in the $200 to $500 range for much of this time, briefly dipping below $200 in January and August of 2015. Bitcoin closed out 2015 at $430, marking a period of overall price stability. The official B symbol that has come to be associated with Bitcoin was adopted in November of that year.

2016: $430 to $960

In 2016, Bitcoin halved for a second time, prompting a notable jump in prices by year’s end. January ended the month with a closing price of $368, but by December, Bitcoin’s price had almost reached $1,000. A slight dip in pricing occurred around August, but for the most part, the cryptocurrency saw a steady and consistent rise in price.

2017 – 2019: $960 to $7,200

Between 2017 and 2019, Bitcoin would dazzle crypto watchers with big price leaps, but the outlook was not entirely rosy during this period. In 2018, a major crash would deliver a blow to BTC’s price and raise questions about the stability of cryptocurrency markets as a whole.

2017: $960 to $20,000

The Bitcoin price in 2017 breached the $1,100 mark in January, a new record at the time — following the Bitcoin halving in July of 2016. By December, the price had soared to nearly $20,000. That’s a 20x rise in less than 12 months, and it was followed predictably by a decline through 2018 and 2019. Bitcoin wouldn’t see the other side of $20,000 until late 2020.

Like the 2013 price surge, the 2017 rally occurred about one year after the halving. What made this time different was that for the first time ever, the general public became more aware of cryptocurrency. Mainstream news outlets began covering stories relating to Bitcoin and other cryptocurrencies. This price rise largely reflected retail buyers entering the market for the first time.

Opinions on Bitcoin ranged from thinking it was a scam to believing it was the greatest thing ever. For the believers, this was an opportunity for many to purchase Bitcoin for the first time, but there’s little doubt that the influx of retail interest in the crypto markets contributed heavily to volatility across the board.

2018: $14,000 to $3,700

The year 2018 was an unpredictable one for Bitcoin pricing. Following a relatively strong start in January, with prices closing above $10,000, the cryptocurrency ended the year at $3,742. This period stands out as one of the most significant cryptocurrency crashes, affecting not only Bitcoin but more than 90 other digital currencies that had arisen.

Bitcoin’s decline during this period was attributed to numerous factors, including the launch of several new crypto offerings that quickly fizzled, which triggered fear in the markets.

Apart from these concerns were rumors that South Korea was contemplating banning cryptocurrency, and the hacking of Coincheck, Japan’s largest OTC cryptocurrency exchange network. Combined, these factors created a perfect storm for price drops and criticism of Bitcoin from none other than Warren Buffett, who characterized it as “rat poison squared”.

2019: $3,700 to $7,200

Bitcoin began to see some recovery in 2019, though it was initially slow going. For most of the first quarter, Bitcoin’s price hovered between $3,500 and $5,000, before a surge in June of that year that tipped its price above $13,000.

June saw the cryptocurrency’s price rise above $10,000 again, and Bitcoin held steady throughout July. By August, the tide had begun to turn, and the remainder of the year saw a gradual slide in pricing. In December 2019, Bitcoin closed at $7,193, still well above its January price point but far from the highs reached in 2017.

The next big test of Bitcoin’s strength in the crypto markets would come in 2020, with the arrival of the COVID-19 pandemic.

2020 – 2025: $7,200 to $124,000

The period from 2020 to 2025 would see Bitcoin prices reach their highest levels yet — and one of the worst crashes in the cryptocurrency’s history. Against mounting pressure, Bitcoin would continue to attract new buyers hoping to get exposure to the crypto market.

2020: $7,200 to $29,000

The crypto feeding frenzy was well underway by the end of 2019, with hundreds of new coins on the market. By January 3, 2020, Bitcoin’s price was $7,347 and rising steadily for the most part. As the halving in May of 2020 approached, Bitcoin’s price shot north of $9,100, nearly a 25% increase in just a few months.

But that was just the start of a meteoric rise — and fall — for BTC that few will forget, and a phase of Bitcoin’s story that many tie to the pandemic. With millions of people worldwide confined at home from 2020 through 2021 (in some cases longer), online speculation became a widespread phenomenon. One offshoot of that may have been the biggest Bitcoin bull market to date.

2021: $29,000 to $69,000

In August 2021, the price of Bitcoin was hovering around $46,000, and by November 2021 BTC hit its all-time best over $68,500.

Toward the end of 2021, however, the Bitcoin hash rate, a factor thought to have some correlation to the Bitcoin price, plummeted to around $47,000 — a loss of close to 30%.

The price drop occurred partly as a result of China requiring its citizens to shut down Bitcoin mining operations. The country previously housed a significant portion of the network’s mining nodes. As a result, these computers had to go offline. Many believe this reduction in mining capacity was a key factor weighing on the Bitcoin price.

In addition, politicians and regulators raised concerns about the future of crypto laws and regulations, adding to the general mood that crypto mavens refer to as FUD (fear, uncertainty, doubt) — one of many crypto slang terms now in wider use.

But as 2021 shifted into 2022, the specter of inflation — in addition to the global energy crisis and geopolitical turmoil thanks to Russia’s war on Ukraine — put a drag on the price of BTC and just about every other major crypto.

2022: $47,000 to $16,5000

From January 2022 through May, Bitcoin’s price continued to sag as the Crypto Winter officially took hold. By May, BTC dipped under $30,000 for the first time since July of 2021. June would see Bitcoin’s price move even lower, dropping to $17,708 at its lowest point that month.

What Is a Crypto Winter?

Unlike a bear market, a crypto winter doesn’t have specific parameters or criteria. But, similar to a bear market, it does mark a period of steady and sometimes precipitous losses that pervade the crypto markets as a whole.

Crypto Struggles in the Face of Crises

This downward trend proved to be the case as crypto prices overall declined through Q2 — partly affected by the collapse of stablecoins like TerraUSD and Luna. In June, Bitcoin fell below $20,000.

Crypto prices struggled through Q3 of 2022, and took another hit in November 2022, thanks to the sudden failure of crypto exchange FTX.

The exchange crashed amid a liquidity crunch and allegations of misused funds by its CEO, Sam Blankman Fried. A bailout by Binance was possible, but the deal fell through because of FTX’s troubled finances and implications of fraud.

The rapid downfall of FTX shocked the financial industry, and the crash had a massive ripple effect throughout the crypto market, affecting consumer confidence. Widespread worries about inflation, as well as steady interest rate hikes, affected broader markets. Bitcoin’s price continued to be a gauge of overall crypto health in many ways, plunging below $20,000 by the end of December, 2022.

2023: $16,500 to $44,000

January 2023 saw Bitcoin’s price increase to around $23,300, sparking hopes that the crypto winter had begun to thaw. Meanwhile, other cryptocurrencies began showing similar price patterns in Q1.

The rest of 2023 proved to be fruitful for those who were able to hold on through the crypto winter. At mid-year, Bitcoin’s price had topped $30,000 once again, and while there were some slight declines, the crypto finished the year strong. By December 2023, Bitcoin’s price notched a high of $44,705, before closing the year just above $42,000.

2024: $42,000 to $100,000+

Bitcoin would hit new benchmarks in 2024, breaking the $100,000 mark for the first time. In January of that year, the SEC would allow Bitcoin to be accessed via exchange-traded funds (ETFs), which led to the addition of several new funds to the market.

The introduction of physical Bitcoin ETFs brought major price increases, as crypto users rushed to buy shares. Bitcoin’s price surged to $63,913 in February 2024, then to $73,750 in March.

After this peak, prices would decline slightly, hovering between $65,000 and $73,000 for most of the year. In November, Bitcoin’s price brushed $100,000, before finally surging past that figure in December. That month, it reached $108,268, ending the year at $93,429.

2025: $94,000 to $124,000

Building off the momentum of 2024, Bitcoin has continued to push toward new heights for much of 2025. Despite some dips in the first quarter, the cryptocurrency reached its highest price ever in mid-August, cresting $124,457. The price fell back slightly to below $110,000 later that month.

Part of the increase can be attributed to ongoing interest in Bitcoin ETFs, which offer exposure to cryptocurrency without having to buy individual coins. Market sentiment has also moved in a more positive direction this year, thanks in part to the current administration’s stance on cryptocurrency.

In July 2025, U.S. securities regulators announced plans to modernize crypto rulemaking, which could pave the way for further innovation in the digital currency space. Dubbed “Project Crypto”, it would make a major shift in the market and potentially make the U.S. a leader in the cryptocurrency market. What that might mean for Bitcoin pricing going forward remains to be seen.

The Takeaway

Bitcoin’s historical price records are a mix of surges and setbacks, but even through crashes, it’s continued to attract interest from buyers and sellers.

As the oldest and still the largest form of crypto, BTC has gone from being worth a fraction of a penny to about $110,000 in mid-2025, which is nothing short of impressive. However, cryptocurrencies are highly volatile, and past performance doesn’t guarantee future results.

SoFi Crypto is back. SoFi members can now buy, sell, and hold cryptocurrencies on a platform with the safeguards of a bank. Access 25+ cryptocurrencies, such as Bitcoin, Ethereum, and Solana, with the first national chartered bank to offer crypto trading. Now you can manage your banking, investing, borrowing, and crypto all in one place, giving you more control over your money.

FAQ

What was the highest price Bitcoin has ever reached?

Bitcoin reached its highest price in mid-August 2025, when it was briefly valued at $124,457. As of late August 2025, the price held above $110,000.

When was Bitcoin worth $1?

Bitcoin reached $1 in early 2011, after hovering around the $0.30 to $0.40 mark for most of 2010. In mid-2011, the price jumped to $30 before tapering off to around $2 to close out the year.

What was the original price of Bitcoin?

The first recorded price of Bitcoin was $0.00099. This price was notched in 2009, when a BitcoinTalk forum member exchanged 5050 Bitcoin with another forum member for $5.02 through PayPal.

If you bought $1,000 in Bitcoin 10 years ago, how much would it be worth today?

If you bought $1,000 in Bitcoin 10 years ago, in 2015, your Bitcoin would be worth approximately $405,000, as of August 2025. That would equate to a 40,425% rate of return on your money.

How many times has Bitcoin “crashed”?

Historically, Bitcoin has crashed nearly a dozen times, with some of the most notable crashes occurring in June 2011, April 2013, and December 2017. Bitcoin crashes occur when there are extreme price fluctuations that cause sharp declines. These fluctuations may be driven by market speculation, regulatory concerns, and macroeconomic factors, such as talk of interest rate hikes or rising inflation.

What is the significance of the Bitcoin halving?

Bitcoin halving is designed to reduce the supply of new Bitcoins entering the market. Halving occurs every four years and cuts the number of new coins created by 50%. The theory behind halving is that scarcity should lead to price appreciation if demand for Bitcoin remains high.

About the author

Brian Nibley

Brian Nibley is a freelance writer, author, and investor who has been covering the cryptocurrency space since 2017. His work has appeared in publications such as MSN Money, Blockworks, Business Insider, Cointelegraph, Finance Magnates, and Newsweek. Read full bio.

Photo credit: iStock/simarik

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If your car is intentionally scratched, dented, or damaged, one of your first questions will probably be whether vandalism is covered by your car insurance. The good news is that if you have comprehensive coverage or a separate vandalism policy, your insurance company will likely help pay for the repairs, minus your deductible. But there are nuances to know.

Here’s a closer look at how auto insurance works in cases of vandalism and tips on how to protect your car from being damaged.

Understanding Vandalism Coverage (Comprehensive Insurance)

As you may know, there are different types of car insurance coverage. One common type is comprehensive coverage. This type of protection is optional, but it can pay to repair or replace your car if it is damaged during a non-collision event, like a fire, hailstorm, or, yes, vandalism.

Definition and Examples of Covered Vandalism

In the eyes of insurers, vandalism occurs whenever there is intentional damage to a vehicle. As we mentioned, coverage is included with comprehensive insurance.

Commonly covered cases of vandalism include:

•   Keying

•   Slashed or damaged tires

•   Broken headlights, taillights, or windows

•   Paint and body damage

•   Sugar in the gas tank

How Comprehensive Coverage Applies to Vandalism Claims

Vandalism is usually covered by comprehensive because it’s not the result of a collision. Collision insurance, on the other hand, covers damages that are the result of a car either colliding with another car or object. Comprehensive covers all other damages that could occur to your car, such as acts of vandalism, natural disasters, or fires.

If your vehicle is vandalized, your comprehensive coverage will likely pay for any needed repairs up to the policy limits, not including your car insurance deductible.

How Vandalism Coverage Varies by Policy

While there is a lot of overlap, each insurance provider offers slightly different comprehensive packages. Deductibles and coverage amounts also vary, and some may even have unique exclusions.

If vandalism is an issue in your area, you may want to research different insurance providers. Some tend to increase premiums more aggressively than others after a claim.

Recommended: Online Auto Insurance

The Vandalism Claim Process and Its Impact

Follow these steps to properly report the incident to both the police and your insurance company.

What to Do Immediately After Vandalism (Report & Document)

Whether the vandalism is taking place right before your eyes or you happen upon it afterward, your first step is to call the police. Do not risk your safety in exchange for your car’s. If you discover the vandalism after the fact, you should still call the police.

It’s important to have a formal police report to properly document the incident. Insurance fraud is always weighed as a possibility, so you want to make it as clear as possible to your insurance company that you’re not responsible for your car’s damage.

Next, take pictures and videos of the damage. Be sure to capture both your whole vehicle and close-ups to give context. If it’s abundantly clear if the crime scene extends beyond your vehicle, get any additional shots that could help your claims adjuster.

How to File Your Insurance Claim

Most online insurance companies offer the ability to file a claim directly on their website or through their mobile app. However, depending on the company, you may need to call or file online.

If you do file a vandalism claim and feel your premium increase is unjustified, you may want to consider switching insurance carriers.

Preventing Car Vandalism

Even if your auto insurance does cover vandalism, it’s better — and often cheaper — to try to prevent it altogether.

Effective Strategies to Deter Vandalism

Here are some simple ways to help keep your car as safe as possible.

•   Check your car alarm: While it’s not foolproof, having a car alarm installed may deter some vandals from breaking into or damaging your vehicle.

•   Hide your valuables: Your car is a more attractive target if you leave cash, electronics, and other valuables in plain sight. Take them out of your car or at least hide them in a safe spot inside your car.

•   Strengthen your windows: If you’re concerned about vandalism, consider adding clear security film to your windows. It makes the glass harder to break, which can minimize damage if someone tries to get inside your car.

The Importance of Parking Location and Security

Where you park can significantly influence how susceptible your car is to vandalism. For example, cars parked in a poorly lit, unsupervised, or high-crime area may be more vulnerable to vandalism.

To help keep your vehicle safe, try parking in areas that are well-lit, have gates or barriers to control access, or have security guards or visible security cameras.

Recommended: Auto Insurance Guide

The Takeaway

Does auto insurance cover vandalism? In general, yes — as long as you have comprehensive coverage or purchase a separate vandalism policy. If your car is vandalized, your insurance company will pay for necessary repairs up to your policy’s limits and minus your deductible. But note that your premiums may increase if you decide to file a claim.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

Do I need comprehensive coverage for my car to be protected from vandalism?

In general, yes. Vandalism falls under comprehensive coverage, which includes protection for damages that are not the result of a collision.

Will my car insurance rates go up if I file a vandalism claim?

It is possible your car insurance will go up for a vandalism claim, but the increase in your premium should be lower than if you file a claim after an at-fault accident.

Is it worth filing a claim for minor vandalism like a keyed door?

Short answer: It largely depends on your deductible. If you have a $500 deductible but the cost of the repair is $200, for instance, then there’s no point in filing a claim. To determine whether or not to file a claim, review your deductible amount and get a few different quotes for the repair.

Does vandalism coverage include things like slashed tires or broken windows?

Will insurance cover slashed tires? Yes, slashed tires and broken windows are both covered by vandalism coverage. Other common issues are covered as well, including:

•   Intentional keying damage

•   Sugar in the gas tank

•   Spray paint damage

Do I need a police report to file a vandalism claim?

Filing a policy report after a vandalism is a good idea because it helps boost your claim’s credibility. The police report will contain information your insurer needs to know, such as what happened, when it happened, and where it happened.

Photo credit: iStock/bagi1998

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Car insurance covers flood damage to your vehicle if you have the right type of policy in place. You’ll need comprehensive coverage in order to have your car insurance company cover your vehicle repair or replacements costs, minus your deductible, if any.

Here’s what to know about flood damage and auto insurance, plus what exclusions may apply.

Understanding Car Insurance Coverage for Flood Damage

How does car insurance cover flood damage? Through a comprehensive policy — here’s how it works.

Overview of Comprehensive Car Insurance

Comprehensive coverage is an optional add-on to a standard car insurance policy, though lenders may require it if you’re financing or leasing your car.

This type of coverage gives you financial protection when your car is damaged outside a collision, including weather events such as flooding, heavy rains, and hail storms. Of course, flooding may be just one reason why your vehicle was damaged. You could also be covered if, say, strong winds cause a tree branch to fall on your car.

Difference Between Comprehensive and Liability Insurance

Your state may not require you to purchase a comprehensive insurance policy. In fact, most states have liability insurance requirements instead. But they’re two very different types of policies.

•   Comprehensive: Covers damage to your vehicle that’s caused by something other than a collision.

•   Liability: Covers the cost of other people’s property damage and bodily injury costs when you’re at fault.

What Is Typically Covered Under Comprehensive Policies?

Here are more details on what a comprehensive policy usually covers, up to a limit:

•   Theft or and vandalism

•   Fire

•   Flooding

•   Hail

•   Collision with an animal

Recommended: A Comprehensive Guide to Car Insurance

Types of Flood Damage Covered by Car Insurance

Not all water damage is treated equally by insurers. Let’s look at a few flooding scenarios when comprehensive coverage may kick in.

Water Damage From Natural Flooding Events

Typically, comprehensive coverage pays for vehicle damage caused by rising water levels. You can file a claim to cover the costs. Depending on the extent of the damage, your insurer may consider it a total loss, meaning it will cost more to repair than the car is worth.

Damage Caused by Driving Through Floodwaters

Does full coverage car insurance cover flood damage from driving through high water? Generally, yes. Whether your engine or electrical systems are harmed or you discover rust and mold, you can file a claim to help cover the costs of all these problems.

Deterioration Due to Prolonged Exposure to Water

In some instances, damage caused by prolonged water exposure is also covered by your comprehensive insurance policy. However, it typically needs to be from something like heavy rain that got into your car or parking your car in an area that flooded.

Keep in mind that you may not be covered if the damage happened because your car wasn’t sealed properly. More on that below.

Recommended: What Does Flood Insurance Cover?

What Flood Damage Is Not Covered by Auto Insurance?

There are a number of instances when an insurer can deny your flood-related claim, even with comprehensive coverage in place.

Damage From Negligence

As the car owner, you’re responsible for both maintenance and preventative measures that can help protect your car from flood damage. For example, if your windows are left open or the seals around the door have deteriorated, your claim could be denied due to negligence.

Consequential Damage Not Directly Related to Flooding

Consequential damage refers to damage that’s not directly caused by the claim event — in this case, flooding — but by a related action. Let’s say your car stalls out in high water and you attempt to restart it, which you shouldn’t do as there’s a risk of engine damage called hydrostatic lock.

In the insurance company’s eyes, since you as the driver tried to restart the car, you caused the engine problem — not the flood waters. Therefore, you would likely not get your claim paid out.

Specific Exclusions in Standard Auto Insurance Policies

Check your policy for exclusions related to comprehensive coverage. Anything you installed on your own probably won’t be covered in your policy. Electronics are a common example, including stereos, scanners, GPS devices, phones, televisions, and other devices.

Filing a Claim for Flood Damage: Step-by-Step Guide

If your car insurance does cover flooding, you’ll need to file a claim in order to get reimbursed for the damage. Remember to ensure your surroundings are safe before trying to check on your car. Don’t enter standing water, since there could be dangerous powerlines submerged beneath the surface.

How to Document Flood Damage to Your Vehicle

When it is safe to get close to your car, take pictures and/or video of both the inside and the outside. You can also manually note issues you notice that may not come across clearly in pictures.

Next, submit all of the details to your insurance company through their claims process, either online, over the phone, or in their app if they have one.

Essential Information Needed for Your Claim

In addition to photos and video of the damage, you’ll also need the following information for a claim:

•   Insurance policy

•   Vehicle title

•   Maintenance records

Timeline for Processing Claims and Receiving Compensation

Once the claim is submitted, you’ll work with an insurance adjuster to see how your coverage applies. While you may be tempted to immediately get your car worked on, wait for an approval from your insurance company. They may pay out for a total loss rather than repairs, depending on the extent of the damage. Also, keep receipts for extra expenses you incur, like rental car fees.

Your insurance company will likely take up to 30 days to process the claim, but the limit can vary by state.

How to Protect Your Car from Flood Damage

Help minimize the damage to your vehicle by following these steps.

Tips for Safeguarding Your Vehicle in Flood-Prone Areas

If you know a storm is coming, and your car is in a flood-prone area, you’ll want to take some precautionary steps. First, keep tabs on the storm so you know when it’s expected to come your way. Before the bad weather starts, move your car to higher ground to reduce the risk of flooding. You may also consider parking in a covered area to prevent further damage.

Once the storm arrives, avoid driving through high water. Even if a detour means a longer drive, it’s worth it to protect yourself and your car.

Importance of Maintaining Comprehensive Coverage

If you live in a flood- or storm-prone area, adding comprehensive coverage can give you major peace of mind.

But you need to purchase a policy proactively instead of waiting for a storm to land in the forecast. Insurance companies usually enact binding restrictions once a large storm is predicted. You’re unable to make changes or add coverage to your policy during this timeframe.

The Takeaway

Does car insurance cover flooding? Most car damages caused by flooding are often covered by your policy as long as you have comprehensive insurance. Make sure you have enough coverage for all types of surprise weather events by comparing multiple insurance quotes.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

Can I add comprehensive coverage right before a storm?

Insurance companies usually enforce binding restrictions when a large storm is in the forecast. That means policy holders aren’t allowed to make changes or add new policies until the binding period is over, which is typically after the storm has passed.

Is it worth getting flood insurance for my car?

Flood insurance falls under comprehensive coverage, which can be a wise choice because it covers damage caused by things other than collisions.

What should I do if my car is submerged or severely damaged by a flood?

First, don’t try to start your car if it has been submerged. Rather, reach out to your insurance company right away. They can give you guidance on the best next steps based on your situation.

Will a flood damage claim make my car insurance rates go up?

Your car insurance rate could go up after flood damage. This is especially true if you live in an area where severe storms are occurring more frequently.

How does an insurer decide if a flooded car is a total loss?

It depends on the repair estimate. If it costs more to fix the car than to pay out its current value, the insurer may declare it a total loss.

Photo credit: iStock/Ajax9

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q325-027

If you’re in an accident or your car breaks down, you may need to get your car towed to the nearest repair shop. The price of towing can be steep, especially if you need to go a long distance. You may find yourself wondering if car insurance will cover that cost, and the answer is: sometimes.

Let’s dive into when insurance covers towing and when you will need to pay out of pocket.

When Does Auto Insurance Cover Towing?

Ultimately, whether or not your car insurance covers the cost of towing will depend on the coverage you have and whether or not you’ve been in an accident.

If you’ve been involved in a collision and can’t drive your car, your collision coverage may pay for towing. It’s also possible that if you’re in an accident in which you’re not at fault, the other driver’s insurance will cover these costs.

Overview of Towing Coverage in Standard Policies

There are several types of car insurance. Most standard auto insurance policies don’t include towing coverage for mechanical breakdowns or other issues not related to a car accident. That said, you may be able to purchase optional roadside assistance from your insurance company.

Conditions That Must Be Met for Towing Coverage to Apply

If you do decide to purchase roadside assistance, there are often certain conditions that must be met before you can use it. For instance, the tow service may be able to tow your vehicle anywhere within a certain radius or to the closest qualified repair shop beyond that radius.

Other roadside services might include jumpstaring your car, delivering fuel, providing locksmith services, or winching in case your car is stuck in mud or snow.

Recommended: Roadside Assistance for a Flat Tire

Does Car Insurance Cover Towing After an Accident?

It is possible that your insurance will pay for towing if your car has been in an accident, either through your collision or comprehensive coverage.

Explanation of Coverage for Towing Following a Covered Accident

Collision insurance covers costs associated with an accident with another vehicle or a stationary object, such as a telephone pole. If you can’t drive your car after this type of accident, your collision coverage may pay for the cost of towing.

Collision insurance usually requires you to pay a deductible before it kicks in. For example, if you have a $500 deductible and your car sustained $2,000 in damage, you’ll need to pay that $500 first before your insurance company steps in to pay the remaining $1,500.

Comprehensive insurance covers damage in non-accident events, such as theft, vandalism, and natural disasters. For example, depending on your coverage, if a tree branch fell on your car and you’re unable to drive it, your comprehensive insurance might pay for the cost of towing it to the nearest repair shop. Comprehensive coverage also typically comes with a deductible.

Process for Filing a Claim for Towing After an Accident

To file a claim after an accident, you’ll first want to make sure that you document the damage with photos and videos. If another driver is involved, get their contact and insurance information. You’ll also want to make a note of the driving conditions, including weather and visibility. And get contact information for any witnesses.

Get a receipt or invoices from the whatever reputable towing company tows your vehicle, and keep a copy for your records as well.

Next, contact your insurance company to file the claim. They will likely assign an adjuster to assess the claim and damages, and you may be asked to provide them with whatever information you gathered, including the receipt from the towing company. Once they’ve reviewed the case, your insurance company will offer you a settlement.

If you are not at fault in an accident, the other driver’s insurance may cover the cost of towing.

Does Car Insurance Cover Impound Fees?

Your car insurance does not usually cover the cost of impound fees except in certain accident-related circumstances.

Definition of Impound Fees and How They Are Incurred

An impound fee is the charge you have to pay when your vehicle has been towed and stored in a secure location, such as an impound lot. Much of the time, cars are impounded due to traffic violations, like accidentally parking in a tow away zone.

In some cases, if your car is in an accident and needs to be cleared off the road, it may be towed to an impound lot. This might happen if you as the driver are incapacitated due to injury, for example.

When Insurance May Cover Impound Fees

If your car is towed to an impound lot due to an accident, your insurance may cover the impound fees. However, if your car is towed for other reasons — like not moving it on a street cleaning day — then your insurance probably won’t cover the impound fees.

Guidelines for Filing Claims Related to Impound Fees

Want to file a claim for your impound fees? You’ll want to follow the same steps as you would for filing a claim.

But there are a couple important things to note. First, impound fees tend to be expensive, so you’ll want to get it out of the lot as fast as possible. This may mean paying the impound fees yourself first. Be sure to keep all receipts and documentation related to these fees, and provide them to your insurance company when you file a claim.

Roadside Assistance Coverage

Whether your car breaks down, gets stuck in the mud, or your battery dies in the grocery store parking lot, 24-hour roadside assistance can be a huge help. As mentioned above, this is an optional add-on offered by many auto insurance companies.

How to Determine if Roadside Assistance Is on Your Policy

Typically, you will have to choose to add roadside assistance to your policy. If you don’t remember whether you’ve done so, review your policy details or call your insurance company and ask.

Recommended: Car Insurance Online

The Takeaway

Does insurance cover towing after an accident? The answer depends on the type of coverage you have and the situation you’re in. The coverage you need in an accident is quite different from the coverage you need when your transmission fails at a stoplight. Understanding the coverage your have now can help you figure out when you’re on the hook for towing services — and whether adding roadside assistance could make sense

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

Do I need roadside assistance if my policy already covers towing after an accident?

You might still consider roadside assistance even if your policy covers towing after an accident. Typically, collision or comprehensive coverage covers accident-related towing. But roadside assistance kicks in during other scenarios, such as breakdowns, flat tires, and lockouts.

Is there a limit to how far my car can be towed under my policy?

Depending on your policy, there may be a limit to how far your car can be towed. For example, you may need to tow the car to the closest reputable repair shop rather than a preferred repair shop farther away.

Does my insurance cover towing if my car just breaks down?

Your car insurance is unlikely to cover the cost of towing when your car breaks down, unless you have added roadside assistance.

How do I use my roadside assistance coverage when I need it?

To use your roadside assistance, you can first call your insurance provider, who can help connect you to local auto service providers. Alternatively, you may be able to call the service providers directly and have your insurance reimburse you. Check your policy details to understand which method is preferred by your insurance company.

Is it cheaper to add roadside assistance to my policy or get it from another service?

It could be cheaper to add roadside assistance to an existing policy vs. getting it through another service. That said, it is worth shopping around to help ensure you’re getting the best deal.

Photo credit: iStock/LanaStock

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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