War with Iran has pushed up gas prices by $1 per gallon. Prices have been climbing for tires, exhaust systems, brakes, and other vehicle parts that need replacing. And many consumers see buying a new car as a luxury that just doesn't fit in the family budget. All these factors have increased the cost of vehicle ownership, but there's another skyrocketing vehicle expense that hasn't gotten as much attention: car insurance.

 

Oddly enough, car insurance rates plummeted in 2020 at the start of the COVID-19 pandemic because people were staying home, driving less, and being rewarded with lower premiums. But by the end of 2020, that trend changed course dramatically, according to an analysis by Cox Automotive, whose analysts discussed insurance costs and overall first-quarter automotive trends in a recent briefing.