Posted 1/19/2024, 9:26:00 PM
Inflation Drives 27% Spike in Auto Insurance Rates, Adds to Industry Woes
- Auto insurance rates have spiked 27% in 2 years, the biggest increase in 50 years
- Inflation is driving up costs to repair and replace vehicles, causing insurance rates to rise
- Interest rates, gas prices, maintenance costs also increasing, making car ownership more expensive
- As ownership costs rise, car sales are dropping, forcing automakers to cut prices and margins
- Analysts expect insurance rates to keep rising for years, prolonging auto industry troubles