Another point of inflationary pressure on Americans: car insurance.

Inflation may be starting to ease, but drivers won’t see a break in insurance this year, with the average cost of a policy rising nearly 14%, according to a new analysis.

The price of full-coverage auto insurance jumped to 2014 dollars a year in January, up 13.7% from a year earlier, according to research by Bankrate. Drivers in some cities, including Orlando, Tampa and Miami, are paying about $3,000 for insurance this year, according to Bankrate.

Higher insurance costs are due to car buyers facing higher car loan interest rates, while car prices have also risen. The typical monthly payment for a new car is now $717, Edmunds said, up 37% from five years ago.

Rates could rise even higher depending on how inflation affects the economy, said Bankrate analyst Kate Deventer.

“Auto insurance is a really important part of your financial health,” she told CBS MoneyWatch. “If you know your rate will be higher even if nothing changes in your coverage, you can prepare your budget a little better for it.”

Who pays the most

The Bankrate study examined the nation’s 25 largest cities to determine where drivers pay the most for auto insurance as a share of their annual income. It turned out that motorists in Boston and Seattle pay the least, about 1.3% and 1.4% respectively. According to Bankrate, drivers in Miami and Tampa, Florida, bear the highest car insurance costs, at 5.5% and 5.2% of their earnings, respectively.

As a rule, the driver’s auto insurance rate depends on the age and brand of the car, the driving experience of the person, the city of residence and other factors. Bankrate also found that adding a teenager to a policy, getting a speeding ticket, and a drunk driving conviction often increases car insurance costs.

One of the reasons Florida auto insurance is relatively higher is that drivers are required to buy insurance without fault. Auto insurers charge more for these policies because they see no fault as more risky because they have to pay for the claim regardless of who caused the damage to the car.

Another reason Florida is expensive: Interstate 4, which connects Tampa and Orlando, is one of the deadliest routes in the country. AAA and road safety experts. Florida is a densely populated state where tourists frequently drive, Deventer said, which also plays a role in the state’s performance.

Some of the cheapest prices for full coverage are in Boston ($1,328), Seattle ($1,361), Washington DC ($1,711), Portland ($1,458) and Charlotte ($1,484). Rates are likely lower in these cities, Deventer said, because auto insurers believe they have fewer accidents, fewer teen drivers on the roads, and fewer drunk driving accidents.

According to Bankrate, Atlanta, Baltimore, New York, Philadelphia and Seattle saw the sharpest declines in auto insurance prices year-over-year, while Chicago, Orlando, Phoenix, San Diego and San Francisco saw the sharpest. height.

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