BIRMINGHAM, Ala. (WBRC) – If your car insurance rates have gone up this year, you’re not alone.
Many drivers are experiencing higher premiums, adding to the financial stress many households are already facing.
According to the U.S. Bureau of Labor Statistics, car insurance rates have increased by about 22% between March 2022 and March 2023. This spike has hit wallets hard, particularly in states like Alabama, where drivers are paying an average of over $2,000 annually to insure their vehicles, according to Bankrate.
Rod Griffin, Senior Director of Consumer Education and Advocacy for Experian, explains that several factors contribute to the rising insurance rates.
“Where you live, your age, gender, marital status, and even your education level can influence the rate you get,” says Griffin.
These demographic factors, combined with broader economic trends, have led to higher premiums for many drivers.
Griffin emphasizes the importance of comparing rates and understanding policy details to save on insurance costs.
“You need to check with multiple providers and make sure you’re comparing apples to apples in the policies. Ensure the coverages are right for you and compliant with your state laws,” Griffin advises.
Experian has introduced an auto insurance marketplace to make this process easier. This online tool allows consumers to compare rates from 40 of the largest insurance companies in the country.
“What we’re finding is that on average, by comparing rates, you’re able to save about $800 a year,” Griffin notes.
In addition to demographic factors, your credit score also plays a significant role in determining your insurance premium. Insurance companies use credit history to assess the likelihood of timely premium payments and the potential for filing claims.
“Managing your credit well can lead to better insurance rates,” Griffin says.
Griffin suggests comparing rates at least twice a year to ensure you’re getting the best deal.
Get news alerts in the Apple App Store and Google Play Store or subscribe to our email newsletter here.
Copyright 2024 WBRC. All rights reserved.
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.