Why Americans will have to budget even more for car insurance in 2023 | JUST THE FAQS

 Even though car prices are coming down because the market's stabilizing, surprisingly, auto insurance prices are going to go way up. Your car insurance price is going to finally catch up with inflation. All the prices of everything related to car repairs and accidents have all risen. Auto parts were difficult to find because of the supply chain issues and the labor shortage made repairs more expensive as well. Auto insurers have actually lost money and so now they're looking to regain that.

 They've been raising prices, but now they're going to continue raising prices through 2023 at least, to try to make some of that back, get back to at least breakeven. There was a research report that said car insurance rates can increase by about 8.4% across the U.S. this year.

 So that's kind of the average, but it's still the largest rate increase they've seen in six years.

Why Americans will have to budget even more for car insurance in 2023 | JUST THE FAQS

Auto insurance is something that's regulated state by state. If you live in a bigger city with more crowded roads, your premiums might be higher. So for example, New Yorkers spend the highest percentage of their income on car insurance. They spend just over 5% of their income on average on car insurance.

 Then other places such as Maine, they're paying 1.03% of their income on car insurance. That's the smallest in the country. They should be aware that they're going to have to pay more for their auto insurance this year and probably budget for that. And importantly, they should really check their coverage to make sure that they are sufficiently covered.

 Because just because your auto insurance price goes up doesn't mean that your coverage has moved up with it..

Berbagi :