Did you get your car insurance renewal letter?
We keep hearing that inflation is down and the GDP is up. Well, that’s true but consumers are facing a lot more challenges. A few days ago, I got my car insurance renewal and my blood pressure went up. I should add that my driving record is excellent but I am not the only one getting these letters.
Having a car is getting more expensive for drivers across the country as auto insurance premiums continue to soar.
According to a new Bankrate report, U.S. drivers are paying an average of $2,543 annually, or $212 per month, for car insurance — an increase of 26% from last year. That’s 3.41% of yearly earnings for those with a salary of $74,580, which is the national median household income according to the latest data from the U.S. Census Bureau.
“Auto insurance rates have been rising at a breakneck pace,” said Greg McBride, chief financial analyst for Bankrate. “And though the pace of increases will eventually slow, that doesn’t mean premiums are coming down.”
Bankrate’s report looks at car insurance costs as a percentage of household income throughout the U.S., to determine the true cost of auto insurance.
That’s the way it is, as Walter Cronkite used to say.
My friend, the insurance agent, told me some of the challenges that the carriers are facing.
For example, urban areas are facing more and more carjackings and lawlessness.
Then there is the cost of repairs and auto parts.
Then there is inflation and more inflation embedded in everything.
Lawlessness has consequences, from police officers leaving the force, to consumers paying more for everything specifically home or auto insurance.
It also explains why a good jobs report is not helping President Biden.