Climate change is one reason why car insurance premiums are soaring
Drivers already struggling with skyrocketing car insurance costs should prepare to absorb another increase before the year’s end, a recent survey said.
Car insurance rates had already risen 17% in the first six months of 2023 and costs are set to soar another 4% by year-end, according to the .
The national average cost of a car insurance policy is $1,668, representing about 2.4% of the average household income. With the additional increase, the average annual auto insurance price will rise to $1,742 by the end of 2023. By comparison, rates increased by 12% in 2022 and dipped slightly in 2020 and 2021 due to reduced claims filed by COVID-19 lockdowns.
Inflation, pricier auto parts, natural disasters, legislative changes and insurers grappling with record-breaking losses are why insurance rates have risen dramatically this year and will continue to increase.
“Vehicle repair and maintenance costs have outpaced inflation and show no signs of slowing, leading insurers to increase auto insurance prices to keep up with the cost of higher claim payouts,” Insurify’s Senior Vice President of Insurance Allie Feakins said. “Given the lag between regulator approvals and actual rate increases, consumers can expect rates to increase over the next 12 to 18 months. It’s more important now than ever to comparison shop.”
If you want to save money on your car costs, you could consider changing your auto insurance provider for a lower monthly rate. You can visit Credible to shop around and find your personalized premium without affecting your credit score.
I’m with State Farm and have a bundle deal and NO claims or tickets, and mine just took a big jump for my 6 month premium since May. Going to look into some other companies.
These damn companies are already Overcharging the Good Drivers with clean Records !!!
They have been for years charging YOU according to your CREDIT RATING Not Your Driving Record & it
should be Illegal to do so !!!!
You are Not there for a Loan & your damn Credit has Nothing to do with your driving PERIOD !!!!!
Where are the Lawyers today to fix these things ????? DUGH !!!!
I am PROOF !!! My record for Driving is Excellant but it does me No good because they keep charging me More
because of my bad credit & I am sick of it !!!! We need New laws to stop this !!!!!
I dropped Allstate years ago for doing this & now all the companies are doing it !!!! It’s Not right
I have wonderful credit and State Farm still jacked my price up high.
The point is > it should be Illegal for the insurance companies to Price your insurance by your credit rating !!!!!
State Farm is notorious for raising rates every time your insurance premium is due. For no reason!!!