Inflation may be cooling, but car insurance rates are revving up. Here's why.

Kayla Mills spent most of this year driving a Honda HRV, but last month she decided to return the vehicle to the dealership. Her reason? The $520 a month car insurance bill no longer fit her budget. 

"I can pay it, but being able to afford it while also affording the rising costs of everything else going on, I made an executive decision to let go of my car," the Massachusetts resident said. 

Mills isn't the only one feeling the pinch of car insurance payments. Not only has overall inflation grew 3% in June compared with a year ago, but auto insurance has gone up a whopping 19.5%, according to the most recent Consumer Price Index data. The national average for full coverage car insurance is nearly $2,300 a year as of July, or $190 a month, according to data from personal finance website Bankrate.