Car insurance rates are surging as Americans struggle to pay for basic necessities and ongoing debt.

The newest Consumer Price Index shows car insurance spiked 20 percent year over year. The surge in pricing occurred after years of gradual price inflation, with earlier reports finding the rates grew by 36 percent since 2020.

That’s at the same time debt is soaring for many Americans. While Americans hold around 1.75 trillion in student debt loans alone, they also have $1.05 trillion in credit card balances not paid off.

  • @0110010001100010
    link
    249 months ago

    Because car prices in general have skyrocketed, more Americans are keeping their current cars for longer. This means costly repairs can become more likely, and the car insurers have adjusted their rates accordingly.

    This makes zero sense as insurance doesn’t cover vehicle maintenance/repairs.

      • @Cosmonauticus
        link
        159 months ago

        They fight tooth and nail not to pay for an accident. How the hell is anyone getting money for repairs?