Car Insurance Prices Keep Rising and Drivers Are Struggling to Keep Up | Global News Avenue

Car insurance prices are more than double the price of five years ago, forcing drivers to cut or lower their coverage to cover premiums.

Auto insurance rose 2.2% in January, up 11.8% from the same period last year, according to a Consumer Price Index report on Wednesday. Insurance prices have soared since the league’s 19th pandemic, more than doubled in the past five years.

Insurance companies increase prices and reduce product volumes as common supply chains make car repairs more expensive and damage due to the creation of more vehicles In natural disasters.

According to a recent survey by Jerry, a U.S. driver said eight of the average person’s insurance prices are now unaffordable.

Prices have increased for some drivers without insurance

To offset the rising cost of insurance, more than a quarter of drivers buy less coverage, while 27% choose higher monthly payment deductions.

At least one in 10 drivers have even given up on car insurance for part of the year because they can’t afford it.

Drivers have also cut spending elsewhere to afford auto insurance. More than a quarter of drivers cut grocery spending, cutting clothes costs by 30%, while family vacations cost less.

Josh Damico, vice president of insurance business at Jerry, said prices rose as insurers want to add more policies. It should slow down. As the market normalizes, interest rates can only increase by 2% to 3% this year.