People are spending more of their money on auto insurance, and that cost is likely to continue growing.
Drivers nationally are spending an average of 2.93% of their income on car insurance this year, based on an average annual premium of $2,014 for full coverage insurance and the national average annual income is $68,852, Bankrate said. That amount rose from 2.57% in 2022 when the average premium was $1,771. And the difference means car insurance rates increased by nearly 14% between 2022 and 2023, compared with an overall rise in yearly inflation of 6.5% in December.
What’s worse, rates will keep rising this year as auto insurers continue to catch up with exploding costs of repair parts, labor and claims, experts say.
