Car insurance rates surge again, keeping inflation elevated
Nevada ranked the second highest auto insurance rates in the country, according to Insurify.
Surging auto insurance premiums are stoking inflation and keeping the financial pressure on millions of Americans nationwide.
Consumer prices rose 0.3% in April from the previous month, slightly lower than expected, and climbed 3.4% from the same time last year, the Labor Department reported Wednesday.
Many of the usual culprits – including rent and groceries – contributed to the monthly increase. But few categories rose as notably as auto insurance.
The cost of auto insurance jumped 1.8% in April, bringing the total annual gain to 22.6% – the fastest yearly rate on record. When compared with the beginning of 2021, before the inflation crisis began, motor vehicle insurance is more than 50% more expensive.
AUTO INSURANCE PREMIUMS ARE SKYROCKETING. WHAT'S TO BLAME?
The cost of auto insurance jumped 1.8% in April, bringing the total annual gain to 22.6% – the fastest yearly rate on record. (REUTERS/Eduardo Munoz / Reuters Photos)
Experts say the problem could soon get worse before it begins to improve.
«With car insurance, it's something that's been building up for a while now,» Shannon Martin, a Bankrate analyst, previously told FOX Business. «Car insurance tends to be very reactionary, so in the past few years, the industry has experienced a lot of losses during a time when inflation has caused the cost of vehicle parts, different products and repair costs, to increase.»
In 2023, the average U.S. rate for full auto insurance surged to $2,019, a 24% increase from $1,633 in 2022 and a nearly 29% jump from $1,567 the previous year, according to Insurify, an insurance comparison shopping site. That amounts to roughly 3.4% of the
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