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
Sanders orders US and Arkansas flags flown at half
Tragedy as five migrants die crossing Channel trying to reach Britain
REBECCA ENGLISH: Portrait of cricket
Korean War veteran will finally get his Purple Heart medal, 73 years late
Children, three, manipulated into sending predators sexual pictures, report claims
Edmunds: What you need to know about wrapping your car
Closing prices for crude oil, gold and other commodities
Parents' fury after trans supply teacher explained their gender identity to seven
Alabama lawmakers OK bill blocking state incentives to companies that voluntarily recognize unions