Yet Another Study Reveals Car Insurance Rates Are Skyrocketing - Up 21% Over Last Year

Greater availability of new cars as supply bottlenecks ease means you’re less likely to be stung by price gouging than you were a couple of years ago. But you’re almost certainly paying a heap more to insure that new car, according to new government figures.

 

The cost of auto cover has rocketed by 20.6 percent in the past 12 months, an increase that’s far beyond the overall 3.2 percent increase on the U.S. Bureau of Labor Statistics’ Consumer Price Index.

 

That jump in insurance premiums, which is partly down to the increased cost of repairing ever more advanced cars, including EVs, is causing a headache for government officials who have battled to bring inflation down from a high of over 9 percent in the summer of 2022.