Inflation Having an Impact on Vehicle Insurance Prices, Too

Inflation has been affecting many aspects of life in the U.S. recently, with major auto insurance companies also calling for rate hikes this year.

Inflation also has an impact on car insurance prices

Car insurance premiums have already increased from 5% to 15%, an increase of about $ 16.55 a year or $ 138 a month. Now, the largest car insurers in the United States are adding to the problems with the request for rate increases in 2022.

Small business fleets are affected

Rate increases are likely to have a severe impact on any small business owner running fleets or any number of vehicles. Another problem is the colloquium effect. For example, due to car insurance inflation, State Farm is projected to increase 4.2%, while Allstate is projected to raise rates by 12%.

The main factors that have contributed to the increase in tariffs include the increase in the price of gas, as well as the higher degrees of fuel theft and labor shortages. There are also disruptions in the supply chain.

High gas prices a “threat to living standards”

According to BuyAutoInsurance, 43% of Americans say rising gas prices are their main concern for 2022. Former Connecticut Governor Jodi Rell said: “This continued rise in gas prices is “It’s bad for consumers, bad for our economy and bad for all other businesses. It’s hurting us and it’s costing us work.”

“Consumers see high gas prices as a threat to their standard of living and a threat to the economy’s ability to create new jobs,” said Richard Curtin, an American economist and researcher.

Doug Halle, the national insurance expert for the Consumer Federation of America, added: “I’ve seen premium increases in the range of 5%, 10% and even 15%. “Increasing the cost of car ownership is a huge factor in the budget of people who are really struggling to make ends meet.”

Average cost to fill a tank

In March 2022, the average cost to fill a car’s gas tank was $ 51.87. Filling the tank of a motorcycle now averages $ 19.95, while the cost of filling the tank of a truck was $ 99.75. Now insurance premiums are also rising, car owners are desperately looking for ways to reduce their costs.

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Image: Depositphotos

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