You’re Not Going Crazy. Auto Insurance Rates Are Skyrocketing

All the pieces is loopy costly proper now, and auto insurance coverage firms aren’t serving to. Knowledge from the U.S Bureau of Labor Statistics present common premiums are approach up. In simply the final three years, the buyer worth index for motorized vehicle insurance coverage leaped from 568.24 to 866.13. By comparability, the index was flat the three years prior.

That represents a rise of roughly 51 p.c since November 2021, based on the Washington Put up. In actual fact, the final three years have seen the sharpest improve in a half-century’s value of knowledge. Translated into {dollars}, Bankrate experiences the average cost for full-coverage auto insurance is at present $2,543 per 12 months. Yikes.

It’s no secret that costs for brand new and used vehicles are at file highs, however the Washington Put up additionally factors out increased restore prices are driving up insurance coverage costs, too. All of the tech that makes automobiles safer additionally makes them dearer to repair, one thing AAA identified again in 2023. However does all that actually account for a 51-percent improve in insurance coverage charges?

Motor1 contacted a number of US-based auto insurance coverage firms for remark. We’ve but to obtain any replies.

If there’s any excellent news right here, the rise could possibly be easing up. The newest information reveals costs leveling off between October and November. Nonetheless, there was the same plateau in Might 2024 earlier than issues began rising once more. Briefly, uncertainty nonetheless abounds within the automotive market, particularly with the potential for massive tariffs on imported items coming subsequent 12 months. That would result in increased new-car pricing, which might seemingly translate on to insurance coverage premiums.