Car insurance premiums around the U.S. are soaring. Here's why.
CBSN
American motorists are spending less on fuel than a year ago, but any savings are likely being gobbled up by soaring car insurance premiums.
Although prices at the pump in December were nearly 2% lower than a year ago, auto insurance rates jumped 20% over the same period, Labor Department data released on Thursday showed. Insurance coverage far outpaced the rate of inflation, rising six times faster than consumer prices overall last year.
Other measures show an even steeper jump in car insurance premiums. In 2023, the average U.S. rate for full auto coverage rose to $2,019 per year, up 24% from $1,633 in 2022 and nearly 29% from 1,567 the prior year, according to insurance comparison shopping site Insurify. A bare-bones policy required by states climbed to $1,154 a year in 2023.
