NEW YORK (AP) — Relentlessly rising auto insurance rates are squeezing car owners and stoking inflation.
Auto insurance rates rose 2.6% in March and are up 22% from a year ago. Premium costs have been marching steadily higher since 2022, even as inflation at the consumer level steadily cooled from its 9.1% peak in the middle of that year. Consumers have had some relief as the rate of cost increases for food and energy, two key components of most budgets, has eased greatly.
But auto insurance and car ownership costs have become a sticking point for consumers and the Federal Reserve in its battle to rein inflation back to its goal of 2%.
Typically, individuals would see a noticeable increase in their premiums because of speeding tickets and other moving violations. Adding new drivers or a general increase in claims in the area were other reasons.
Why AP called the Pennsylvania 12th District primary for Summer Lee
Enhanced technology ensures safety and efficiency of Chinese NEVs
Expansion club Bay FC edges Seattle Reign for first home win in NWSL
Saweetie and YG Marley look cozy as they put on a loved
Heartbroken woman confronts her obsessed ex
At birthplace of Olympics, performers at flame
Keanu Reeves and longtime girlfriend Alexandra Grant put on a loved
Biden to host Iraqi leader as Mideast tensions soar, raising more questions about US troop presence
Yokohama reaches Asian Champions League final by beating Ulsan in penalty shootout 5
China ranks second in world in terms of computing power
Carli Lloyd turns diplomat and takes a US message to kids in Greece
Private sector actively competing for involvement in China's space station, manned lunar missions