While inflation cools down for most items in the economy, auto insurance premiums continue to rise at an alarming rate.
A recent survey by Experian found that over half of the respondents reported an increase in car insurance premiums in the past six months.
The federal inflation numbers reveal that car insurance premiums rose by an average of 16.9% from June 2022 to June 2023, surpassing any other tracked expenditure by the Bureau of Labor Statistics.
Insurance companies attribute these hikes to higher costs in auto repairs, medical care, car replacements, and increasing rates of collisions and vehicle theft.
However, the study also shows that around 34% of respondents experienced stable insurance prices, and 14% even reported paying less than in 2022.