Inflation also has an impact on car insurance prices

Inflation has weighed on many aspects of life in the United States recently, with major auto insurance companies now calling for rate increases this year.

Inflation also has an impact on car insurance prices

Auto insurance premiums have already increased from 5% to 15%, an increase of approximately $16.55 per year or $138 per month. Now, the largest auto insurers in the United States are compounding the problems by asking for rate increases in 2022.

Small business fleets are hit hard

The rate increases are likely to have a hard impact on small business owners who manage fleets, or any number of vehicles. Another problem is the training effect. For example, due to auto insurance inflation, State Farm expects to increase by 4.2%, while Allstate was expected to increase its rates by 12%.

The main factors contributing to the rate increases include rising gasoline prices, as well as higher degrees of fuel theft and labor shortages. There are also ongoing supply chain disruptions.

High gas prices are a ‘threat to living standards’

According to BuyAutoInsurance, 43% of Americans say rising gas prices are their biggest concern in 2022. Former Connecticut Governor Jodi Rell said, “This continued spike in gas prices is bad. for consumers, bad for our economy and bad. for all other businesses. It hurts us and costs us jobs.

“Consumers see high gasoline prices as a threat to their standard of living and a threat to the economy’s ability to create new jobs,” said Richard Curtin, an American economist and researcher.

Consumer Federation of America national insurance expert Doug Halle added, “I’ve seen premium increases in the range of 5%, 10% and even 15%. Rate hikes drive up the already high cost of owning a car. This throws a huge wrench in the budget of people who are really struggling to get by.

Average cost to fill a tank

In March 2022, the average cost to fill a car gas tank was $51.87. Filling a motorcycle tank now costs an average of $19.95, while the cost of filling a truck tank is as high as $99.75. Now that insurance premiums are also rising, vehicle owners are desperately looking for ways to cut costs.

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