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Car Insurance Skyrockets

Consumers are now juggling another high cost on top of high loan payments, vehicle prices.

April 11, 2024
Car Insurance Skyrockets

The auto insurance index jumped more than 22% in the past year, far exceeding that of medical care, for instance, which rose just 2%.

IMAGE: Pexels/Vlad Deep

1 min to read


Auto insurance costs are soaring as consumers already face high sticker prices and loan interest rates.

The March Consumer Price Index report shows the auto insurance index jumped more than 22% in the past year, far exceeding that of medical care, for instance, which rose just 2%.

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In March alone, the auto insurance index increased 2.6% following about a 1% increase in February.

Online insurance comparison and purchase company Insurify said increasing repair costs as vehicle technologies get more intricate and expensive, in addition to climate change-related weather factors, are driving up auto insurance costs. It predicts a slowing in rate increases, though it forecasts a 7% jump this year.

Insurify said the rate growth is far outpacing wage increases. It puts the national average annual cost for full vehicle coverage at $2,019, or 2.6% of the median U.S. household income.

Many consumers lower coverage limits and raise deductibles to compensate for the rate increases.

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Originally posted on Auto Dealer Today

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