What Is Behind the Spike? | Global News Avenue

Car insurance It is necessary for drivers, but it is expensive. Factors that lead to rising costs in auto insurance policy include increasingly expensive maintenance, adventure driving trends and litigation.

How much does the interest rate increase?

According to November 2024, the price of car insurance last year rose by 12.7 % Consumer Price Index (CPI) data. The average annual cost of automobile insurance in 2025 is $ 2,101.

What is behind the rise?

• Expensive car repair: Use all its safety equipment, sensors and cameras to repair the parts required for new cars are more expensive, and the artificial manual required for car maintenance will also rise. The inflation and labor transformation of parts into higher premiums.
• Increase in risk driving: Adventure driving behavior, such as super -speed behavior and accident rate. In 2022, 42,514 people died on the American road, an increase of 10 % over 2020. Risk driving behavior means more car insurance claims and higher premiums.
• More lawsuits: According to the Institute of Institute of Institute of Institute of Institute of Institute of Institute of Institute of Institute of Institute of Institute of Institute of Institute of Insurance, the increase in litigation related to the car accident claims is a potential factor that leads to an increase in premium costs. More lawsuits and expenditures of insurance companies mean higher premiums of consumers. The advertisement of personal injury lawyers on TV and billboards promises to provide huge expenditures to those who are injured in cars or trucks, which causes losses to the profit company’s profits. Therefore, all of us must pay more.

What can consumers do?

More and more drivers Shop at a better priceEssence A report from JD Power found that in the past year, 49 % of auto insurance companies have bought a new policy in the past year. Consumers of the conversion insurance company in the past five years have won a median savings of $ 461.

The driver is right Potential discountEssence When you bind your house and the car insurance policy, the insurance company may provide discounts. You can also find discounts according to your mileage, allowing insurance companies to monitor your driving, or register a defensive driving course.

As the last means, the driver can consider switching to public transport, thereby completely eliminating the cost of car insurance. However, 45 % of Americans do not have public transport as a choice, and most people may not be able to solve their work without relying on private vehicles.

Bottom line

Although the price may be stabilized in the future, it is expected that premiums will become more expensive in 2025. Such as more expensive car maintenance, the incidence and litigation factors are still working.

Consumers are still necessary for consumers who need to drive. You can consider switching insurance companies and ask potential discounts to find a better price.