Car insurance rates have soared 36% since 2020. Here’s why.
ABC News
The rate increases coincided with a jump in the price of cars and auto repairs.
As car prices have climbed in recent years, bright-colored signs at dealerships and boldface headlines have blared warnings to buyers.
But less attention has been paid to the jump in price for a stiff expense that comes along with the vehicle: insurance.
Car insurance rates have climbed 36% since January 2020, according to an ABC News analysis of consumer price data released by the Bureau of Labor Statistics.
Within the past year alone, rates for car insurance have soared more than 20%, BLS data shows.
"Prices for a lot of things have gone up over the last few years," Tom Simons, an economist at Jefferies who studies the auto industry, told ABC News. "The difference with car insurance is that it's still going up while others have subsided."
