Dude, where's my…affordable car insurance?! 😵💫 You're not the only one asking. Car insurance premiums have gone up faster than Elon can put another satellite in the sky. 📡
So what gives? How come we're paying so much more than just a couple of years ago? 🤔 We've got some insights into this mystery. 🕵️
Here’s Five Fast Facts on the rising cost of car insurance:
- 🥷 Highway Robbery - According to recent research by J.D. Power, auto insurance costs grew more than twice as much as the 6% inflation rate. They surged by 14.5% in February of this year, and some people experienced rate increases of over 20%.
- 🆘 Feelin' the Pain - Costs are increasing for all drivers across the board because of inflation. Additionally, people are driving more and the cost of vehicles has increased. It also doesn't look like it's getting better any time soon. Car insurance prices are expected to rise another 7% in 2023 to an average of $1,895 per year.
- 🛣️ Watch the Road! - One of the biggest factors that determines your auto insurance rates is your driving record. Safe drivers are going to pay less than Wreck-it Ralph. Your age, zip code, and even your credit score can also play huge roles in how much you pay.
- 🔔 Bells & Whistles - Drivers that rack up the mileage also tend to pay more than others. The more you're on the road, the more you're at risk of an accident, which drives up premiums. If you add extras to your insurance plan, like gap insurance and roadside assistance, you'll likely pay more, too.
- 🥨 But Here's the Twist - To lower insurance costs, many drivers choose a plan with a higher deductible, but there's a catch. Although a higher deductible lowers your monthly or yearly premium, you could get smacked with a bigger bill in an emergency. If you want to go this route, make sure it makes sense for your financial situation.
🔥Bottom line: One of the smartest things you can do to lower your car insurance is…shop around! Insurance carriers often offer much lower rates to new customers for the same or similar coverage. Check out sites like Insurify to quickly grab quotes from several providers. Wondering why the price of cars looks like your phone number? Read up on it here.
Has your car insurance increased this year?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
