Auto Insurance Rates Reach Highest Level In Almost 50 Years

black car
Adé Hennis
October 12, 2023

Driving without auto insurance can result in fines, license suspension, and even jail time. Yet, Americans are taking the risk of driving without it, and it could be linked to high insurance costs.

A 2023 survey showed that 17 percent of nearly 3,000 drivers are driving uninsured. Relatedly, the cost of auto insurance is 19 percent higher compared to last year, the largest annual increase since 1976.

“Inflation and supply chain costs are the dominant factors in auto rate changes, not weather,” says Nationwide spokesperson Ryan Ankrom. Root Insurance’s Chief Insurance Officer Frank Palmer says that the auto insurance industry has had to increase rates to keep up with the “significant increase” in car repair costs, body shop wages, and used car prices.

While some of these factors are outside of drivers’ hands, there are still practices that can help keep rates as low as possible. Those practices include maintaining a good driving record, taking a defensive driving course, and improving credit scores.

While implementing the previously mentioned practices won’t guarantee a decrease in auto insurance, it can still be useful for drivers to know why their premiums may be increasing and how they can be prepared.

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