The Cost Of Car Insurance Is Continuing To Rise
While inflation has begun to ease throughout the nation, car insurance prices are continuing to rise, as premiums are projected to go up throughout the year.
According to Bankrate’s annual True Cost of Auto Insurance Report, released this Monday, the average cost of full coverage auto insurance is about $2,014 a year in America.
Cat Deventer, Bankrate’s insurance analyst, told CNN that “car insurance rates are reactionary,” and currently feeling the lasting impact of high inflation rates from throughout the last two years; which also led to labor and auto part shortages.
These shortages, as a result, caused the cost of insurance claims on car repairs to increase, along with other related auto costs.
“If inflation keeps cooling we could see insurers file for rate decreases in future years.”
If you get into an accident, receive a speeding ticket, have a teenager as a driver under your policy, and credit score decreases are all factors that could lead to one having to pay an increased premium.
Where you live can also have a major impact on how much you pay for auto insurance. According to Deventer: “Each geographic area has different risks and costs of living, so the cost for car insurance varies across the nation.”
Bankrate reported that Orlando, Florida saw the biggest rise in premium costs throughout 2023 so far, with an increase of 23% to average a $3,078 annual cost.
Phoenix, Arizona experienced the second highest rise in cost with a 17% increase to $2,164. Philadelphia and New York City both experienced the biggest decrease in rates. Philadelphia costs decreased around 22% to a $1,872 average, while NYC had a 14% decrease to a $2,649 average.
“While you can’t control the effects of inflation or location on your premium, there are other things you can do to keep your costs to a minimum,” Deventer explained.
She recommended looking for as many discounts as your insurer offers and taking advantage of them. For instance, taking a defensive driving course can decrease one’s premiums in many areas.
“Or if the teenager on your policy goes away to boarding school or college and can’t drive your car, your insurer may offer a “student away” discount. And if they aren’t away, but attend school full-time and get good grades through age 24, that may save you a few bucks, too,” Deventer said.
“Every company uses a different algorithm to determine rates,” Deventor continued, so take the time to shop around for different providers in your area to receive the best possible coverage at the lowest price.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at firstname.lastname@example.org.