Auto Insurance Costs Soar by 20% in the US

By | January 12, 2024

There’s no relief in sight for US car owners who’ve faced soaring costs of maintaining a vehicle in the past two years.

Prices of motor-vehicle insurance rose 20.3% in December from a year earlier, the biggest jump since 1976, according to the Bureau of Labor Statistics. That was the 16th straight month of annual gains exceeding 10%.

And insurance rates will probably keep on rising, propelled by higher costs of replacement parts and repairs, Bloomberg Intelligence analysts said last month.

Prices of used cars and trucks have come down from their peaks two years ago. But the December consumer-price index released Thursday showed an uptick in used-vehicle costs from the previous month, defying economists forecasts for a decline. The surprise monthly increase in that category was among the main drivers of a acceleration in the overall rate of inflation.

Even after a drop in 2023, used-vehicle prices remain up 38% since the start of the pandemic. As for new cars and trucks, prices are not increasing nearly as much as they did in 2022. On an annual basis, they were up only 1% in December.

Photo: Photographer: Kyle Grillot/Bloomberg

Topics Auto USA

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Latest Comments

  • January 16, 2024 at 1:03 pm
    BOB says:
    MB, see the truth hurts folks. When this country in the 1940s, began to allow the Corporations in the USA flip the script, unto the Middle Class with respect tax burden, we h... read more
  • January 15, 2024 at 11:08 am
    Steven Rhodes says:
    When you factor in wage stagnation it's an even worse picture for consumers. Insurance carriers should still be able to charge what they need to in order to turn a profit; the... read more
  • January 12, 2024 at 3:16 pm
    MB says:
    We don't have capitalism. We have capitalism that's manipulated by the central planners.

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