Why Your Auto Insurance Costs Are Skyrocketing

Auto insurance costs are rising much faster than overall inflation, jumping over 19% in the past year
More accidents and risky driving habits that developed during the pandemic are raising insurance claims
Repairing and replacing damaged cars is getting very expensive due to supply chain issues
Natural disasters like hail storms and wildfires are also driving up the costs for insurance companies
Insurance regulators have to balance keeping premiums affordable while still letting companies collect enough to pay claims

npr.org

Relevant topic timeline:

8/29/2023

Americans forging homeowners insurance amid skyrocketing rates

More Americans are opting to forgo homeowners' insurance as rates increase, with 12% of homeowners earning less than $40K going without insurance in 2023, prompting experts to recommend bundling home and auto insurance to reduce costs.

9/3/2023

Is the era of inexpensive cars over? Why auto prices are on the rise in America

The average price of cars in America has risen recently, causing financial strain for Gen Z and millennials, especially due to rising interest rates and high levels of auto loan delinquency.

9/7/2023

Rising Auto Insurance Costs Are Screwing Drivers Across The Country

The rising costs of doing business in the auto insurance industry in the U.S. are leading to increasing premiums for drivers due to expensive repairs, rising disaster-related claims, and higher used car prices.

9/20/2023

Climate Change Drives Home Insurance Crisis in U.S. as Rates Soar and Coverage Vanishes

Millions of American homeowners are facing increasing insurance costs and reduced coverage due to climate change-related risks, with properties in high-risk areas potentially becoming overvalued as insurance underprices the risk, according to a new analysis from the First Street Foundation.

9/22/2023

Gas Prices Tick Down but Could Spike Again Soon

Gas prices in the US have slightly decreased due to the switch to less expensive winter blend gasoline, but the decline is being slowed by higher oil costs, with the potential for prices to spike as oil prices surge. The Federal Reserve is pausing interest rate hikes as inflation, driven by a surge in oil prices, increases, but future rate hikes could impact consumer debt, including car insurance. Some states saw significant shifts in gas prices, with Nevada experiencing the largest increase and California having the highest gas prices in the nation. Shopping for cheaper auto insurance can help lower car ownership costs.

10/6/2023

High Vehicle Costs Are Putting Squeeze on American Households

Pandemic disruptions have caused the cost of car ownership in the US to surge, putting a financial burden on many drivers, as increased purchase prices, maintenance costs, and finance charges lead to higher expenses.

10/6/2023

New Cars Now Unaffordable for Most Americans Due to Soaring Prices and Stagnant Wages

The rising cost of buying a car, driven by factors such as interest rates and dealer markups, means that the majority of Americans cannot afford the monthly payments of an average car without earning over $100,000 per year.

Topics

Posted 9/13/2023, 9:00:32 AM

Why Your Auto Insurance Costs Are Skyrocketing

Auto insurance costs are rising much faster than overall inflation, jumping over 19% in the past year
More accidents and risky driving habits that developed during the pandemic are raising insurance claims
Repairing and replacing damaged cars is getting very expensive due to supply chain issues
Natural disasters like hail storms and wildfires are also driving up the costs for insurance companies
Insurance regulators have to balance keeping premiums affordable while still letting companies collect enough to pay claims

npr.org

Relevant topic timeline:

8/29/2023

Americans forging homeowners insurance amid skyrocketing rates

9/3/2023

Is the era of inexpensive cars over? Why auto prices are on the rise in America

The average price of cars in America has risen recently, causing financial strain for Gen Z and millennials, especially due to rising interest rates and high levels of auto loan delinquency.

9/7/2023

Rising Auto Insurance Costs Are Screwing Drivers Across The Country

9/20/2023

Climate Change Drives Home Insurance Crisis in U.S. as Rates Soar and Coverage Vanishes

9/22/2023

Gas Prices Tick Down but Could Spike Again Soon

10/6/2023

High Vehicle Costs Are Putting Squeeze on American Households

10/6/2023

New Cars Now Unaffordable for Most Americans Due to Soaring Prices and Stagnant Wages