How consumers can cut car insurance costs

The latest Consumer Price Index (CPI) report revealed that car insurance premiums have risen 22.2% year over year. Insurance Information Institute vice president of media relations Loretta Worters joins Wealth! to discuss the factors driving this significant increase in auto insurance cost

Worters notes that since the pandemic, auto claims have soared as more people returned to the roads, leading to "more people driving crazy" and resulting in a higher number of accidents. This, combined with elevated repair costs and medical bills, has raised expenses across the auto insurance industry, ultimately translating to higher prices for consumers.

To help consumers reduce their auto insurance bills, Worters offers several recommendations. She advises bundling home and auto policies, as well as shopping around to compare offerings from different insurance companies, as rates can vary significantly. Worters also suggests that consumers research the insurance costs associated with specific vehicle models before making a purchase, as the car's characteristics can impact the premiums.

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Sandra Santeyian

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