Posted 4/11/2024, 10:08:43 AM
Increased Car Prices Offset by Soaring Insurance Costs
- Car prices are dropping due to increased supply, but insurance rates are soaring, erasing savings
- Factors making insurance more expensive include repairs for complex modern cars, more natural disasters, and shortage of mechanics
- Average US auto insurance jumped 24% last year to over $182 per month, and projected to rise 7% next year
- Insurance now over 25% of total cost of owning some models, compared to 13-16% pre-pandemic
- Rate hikes hurting affordability and slowing Fed progress on overall inflation fight
