MIAMI – After two straight months of decline, consumer prices rose more than expected in January.
Inflation jumped .05 percent last month to an annual rate of 6.4 percent. One of the key reasons why inflation remains stubbornly high are items like auto insurance, up nearly 15 percent over the last year.
Juan Maroso said the cost of insuring his Tesla in Miami gave him a whole new kind of sticker shock.
“My regular insurance was $2,400 for six months, and it went up to $4,000,” he said.
That’s nearly a 70 percent jump.
“It’s one more thing to add to the list, honestly, but it hurts. It definitely hurts,” said Maroso.
A new report by Bankrate.com found nationwide premiums have risen more than $240 dollars on average, topping $2,000 a year ($2,014).
Florida drivers saw the biggest jump, up nearly twice that amount $421 to almost $3,200 a year. In 2022, the average was $2,762, add $421 to that for 2023 and drivers are paying $3,183. As a percentage of average household income, drivers living in Miami now pay the most – 5.51%, or $3,447.
Hal and Simone krantz of Coral Springs each have a car and say their auto insurance bill went from $1100 to $1700 for 6 months
“Assuming a 50 percent increase is ridiculous and everyone just accepts it and I don’t think we have to,” says Hal Krantz
They drive little and have no accidents or tickets.
Krantz called other insurance companies looking for a better rate and didn’t find anything different. He says he is looking at raising his deductible.
Mark Friedlander with the insurance information institute which tracks trends blames the higher rates on more accidents, and increased costs for labor.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.