Car Insurance Rates Are Headed in a Bad Direction for Drivers
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Car insurance prices are rising as people return to the roads this summer.
The last year saw a decline in premium rates, thanks to the lower traffic volumes on U.S. streets brought on by the pandemic. But as the number of driving hours declined, the country’s accident fatality rate actually increased.
This, coupled with growing costs related to repairs, has experts predicting car insurance rates to continue rising into the fall.
Why car insurance rates are changing
2020 was a good year to sign up for car insurance. Rates dropped 4% nationwide, according to PR Newswire, and many providers offered their customers rebates because of the pandemic.
But data collected over the year will have a negative impact on premium rates moving forward. Despite driving hours plummeting 13%, as per CNBC, the fatality rate increased by 7%. Speeding, impaired driving, and distracted driving are apparently to blame.
Repair costs are also rising, thanks to microchip shortages and a lack of skilled labor. The labor problem might fix itself as people return to work, but the chip shortage could continue to slow down repair times.
Other car expenses on the rise
Insurance rates and repair costs aren’t the only things making car ownership more expensive. Gas prices are also increasing.
Fuel prices began to rise after hackers caused a gas shortage in May. The security breach at Colonial Pipeline, along with supply chain problems caused by weather damage to refineries over the winter, brought the price up earlier than expected.
Prices began to stabilize but quickly spiked again for the Memorial Day weekend. Since then, gas has stayed around $3.00 a gallon in most of the country, the highest it’s been since 2014.
How to save on car expenses
With gas and insurance prices both increasing, it’s more important than ever to find ways to save. You can change your driving habits and download a gas app to save on fuel, but the easiest way to save the most is to sign up with Jerry.
Jerry is a personal insurance broker that lives in your pocket. But don’t worry about buying tiny office furniture, Jerry is an app. Once you download Jerry, just answer a handful of questions that will take you roughly 45 seconds to complete and you’ll immediately get car insurance quotes for coverage similar to your current plan. Jerry customers save an average of $879 a year. Oh, and we should mention…Jerry is free.