As stories about motor vehicle insurance premiums climbing across the nation swirl, we can’t help but wonder how it’s affecting buyers
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Car insurance rates have surged across the board, as reported by numerous official sources. The reasons vary from the ever-present specter of inflation to a surge in auto thefts and escalating repair costs, among others. But here’s the burning question: are you, our esteemed readers, feeling the pinch as severely as the data would suggest?
Insurance premiums surged by a whopping 20.3% in December compared to a year earlier, marking the largest increase since the mid-1970s, according to government data. The situation is more dire in some parts of the nation.
On average, insurance costs about $165 per month nationwide, but in Florida, it has risen to $249. Meanwhile, in Michigan, drivers are grappling with an even steeper bill, with premiums averaging $386 per month. The issue is so bad that it’s a major contributor to inflation.
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In some cases, it appears that the increases are somewhat warranted. For example, it was big news last year when insurance providers started kicking Kia and Hyundai off of their coverage. The rise in auto theft among those brands was significant enough that insurance companies responded to the increased likelihood of a payout.
In other cases, it’s becoming clear that as repair costs escalate, insurance rates are following suit. For instance, in July 2023, Carscoops reported a staggering 20% surge in repair costs. Sure, the supply chain issues of the pandemic played a role there but expensive technology baked into most new cars does too, and unlike Covid, those parts aren’t going away.
There does appear to be independent third-party anecdotal evidence suggesting an increase in rates. One Reddit user initiated a thread on the topic, noting that they’re receiving quotes ranging from $400 to $800 more than what they’re currently paying.
Some respondents in the thread mentioned that after paying under $300 for an extended period, they are now receiving quotes of $1,200 a month. At least one individual stated that the rates were so exorbitant that they decided to part ways with their Tesla due to the expenses.
So, what about you? Have you noticed your rates increasing as well? If so, by how much? And which companies have you found to offer the best value for money? Feel free to share your experiences in the comment section below!
