EAST PROVIDENCE, R.I. (WPRI) — The latest numbers from the U.S. government show inflation eased slightly from January to February, but it’s still high.
When it comes to auto insurance, prices are still surging — up almost 15%.
“It is definitely varied by state and by region but pretty much all states are experiencing some degree of price increase,” said Chris DiMartino, Senior Vice President of Insurance Services with AAA.
Everyone is spending more money on auto insurance, and that expense is likely to continue growing due to the cost of repair parts, labor and claims, according to experts.
“Traffic is back, so there are more accidents and it’s most importantly more expensive to fix cars,” DiMartino explained. “It’s harder to get parts and essentially all of us end up having to pay more to cover the cost.”
The U.S. Bureau of Labor Statistics said from January 2022 to January 2023, the average price increase for auto insurance nationwide was 14.7%.
As a consumer, there are things you can do to lower the price of insurance, including making sure that all of your information is accurate with the insurance company.
“You may have retired and you may still be being rated as if you drive to work every day,” DiMartino said. “Insurance companies have plenty of discounts you should call and see if you qualify for every discount that is available, whether it’s a paperless discount or taking a defensive driving class, or you may have a student that’s away at school. You can actually save quite a bit of money.”
DiMartino said you can also save money by increasing your deductibles on your collision and comprehensive coverages.
“Certainly the trade-off is you’re going to pay more if your deductible is higher if you’re involved in an accident, so always be conscious of that decision,” he added.
So, will we see insurance rates ease or will they continue on their current trend for a while? DiMartino said the insurance industry tends to move in cycles.
“If you look out 6 months, 12 months, 18 months, I think we will get back to a little bit more normal cycle where the rate increases are small, or not at all, but I think I take comfort in the fact that this is really something that is temporary,” he said.