Why inflation drives car insurance prices up

First at the grocery store, then the utility bills, followed by a full tank of gas. And now, car insurance is the latest expense to swell amid inflation.

Shauna Taylor, a good driver, said she recently had to switch auto insurance companies because her premiums went up by $80 a month.

“It’s humiliating because no matter how hard you work, it seems to get higher and higher each time,” she said as the price of gas rolls up behind her.

Paul Acuna makes his living as an insurance agent in the Valley.

He says he had to break the news to drivers that, like everything else, insurance premiums were rising. Something no one wants to hear.

“They don’t understand why it’s going up so fast.

We spoke to Insurify, a website that helps consumers compare insurance prices.

It will give you a list of different factors to calculate the price, such as car type, year, zip code, weather, and even population density.

The average auto insurance rate has recently increased by 4% to just over $1,700 a year. Rising inflation is pushing up the cost of car repairs and medical care, according to the Bureau of Labor Statistics.

Some insurance companies can tell drivers that if they’re trying to fix something like a dented fender on an old mod, they’re likely to run into parts shortages and labor shortages. your claim.

Insurify data journalist Chase Gardner said, “Companies are paying more to repair even if they were in the same accident two years ago. Today, they’re paying 15% more.” I’m here.

Whether it’s sharing his suggestions for cheaper insurance, shopping to find the best quote, safe driving courses, good driving records, or how long it takes to commute to qualify for a lower mileage discount. Ask about discounts that might lower the price.

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