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LOS ANGELES, Calif. (CBS NEWS) – The overall inflation rate is currently 3.5%, but Americans are seeing double-digit increases in car insurance prices. There’s a reason the prices are higher and ways to lower the costs.
Car insurance continues to accelerate. The latest numbers show rates are up 22% in the last year.
“The reason for increases in auto insurance are more expensive cars, in general. New cars and used cars are more expensive these days. More expensive repairs. Cars are just more expensive to repair. The technology in them, the cosmetic things,” said Vincent Plymell with the Colorado Division of Insurance.
Just a small fender bender can damage sensors and cameras. Those can lead to expensive repairs. The insurance industry is highly competitive and experts explain there are ways to bring those prices down.
If you work from home you may qualify for a low mileage discount. Bundling car and home insurance together can lead to a better rate. And car owners should examine their policy to see if they can drop parts of it like car rental insurance or towing insurance. The average monthly cost for full coverage is $192 a month but a minimum policy is just $53, according to Bankrate.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.