Car insurance premiums in the United States have increased from 5% to 15%. StateFarm and Allstate, 2 of the largest auto insurers in the nation, are filing for rate increases this year. When asked why, insurers say they face issues with higher fuel theft, increased car prices, supply chain disruptions, and rising medical costs. A common thread linking all these factors together is inflation.
Inflation is making it more expensive to own a car. Not only are car insurance rates rising, but gas prices have increased nearly 40% since 2020. The average cost to fill a car’s tank is above $50. Most Americans can’t get where they need to be without a car, so they’re looking for other ways to cut costs. Foregoing insurance is illegal in 48 states. Hybrid or electric vehicle purchases are difficult due to supply chain shortages.
So what can car owners do? First, learn to drive more fuel efficiently. Avoid sudden stops, prolonged idling (like in drive thrus), and speeding. Another tip is to cut unnecessary car trips out of your routine. Driving 10% less can save $275 per year. Finally, shop around for new car insurance quotes. See if you can save by switching.
