Car insurance premiums going up? Inflation is to blame.
Inflation is causing higher prices in every industry, including car insurance Like many Americans, you have noticed a premium increase on a recent billing statement from your auto insurance carrier. Maybe you’ve asked yourself: “Why does my car insurance keep going up?” Your car insurance premium can rise for a variety of reasons, like when a discount expires, your vehicle usage increases, or if you get a speeding ticket. The economy can also be a factor in your car insurance rate. Keep reading to understand more about the relationship between car insurance premiums and the economy. What to know about insurance and inflation When the pandemic began in 2020, lockdowns kept many drivers off the road, resulting in a profitable year for insurers. Many insurance carriers even issued rebates to their policyholders or reduced rates, according to a Wall Street Journal report. The economic story of 2022 has been massive inflation driving up costs in nearly every industry. In fact, between June 2021 and June 2022, the Consumer Price Index spiked 9.1%, a 40-year high. That means you’re spending 9.1% more on goods and services than you were a year ago. As such, you’re paying more to fill up your…