Consumers may soon see an increase in car insurance premiums
ALBUQUERQUE, N.M. – Food, gas, housing – these are just a few things that have experienced sticker shock as goods have gone up in price this year.
Now, your car insurance premiums may be next as insurance rates are expected to increase.
"Right now, there are more drivers on the road than we’ve ever seen before and we have more incidents of distracted driving and other problems," said Reilly White, Ph.D., an associate professor with UNM’s Anderson School of Management.
Currently, there are multiple factors stacked against consumers.
"This year the average cost of a new car jumped up past $45,000 for the first time," White said. "That’s a huge increase of about 12% over last year. Used cars have gone up even more – on average over 20% – and hit the $25,000 level. This means that it costs more to insure."
Supply chain issues and repairs that cost more are also contributing factors in the possible rate increase. Data also shows distracted driving crashes are up, which is another contributing factor.
"We have so much stuff that’s happening online, so much happening on our phones, people are attending meetings and doing other things in their car – all of which are risky behaviors," White noted.
What can you do as the consumer? White says you have to shop around and compare prices while also considering what you need and what you can drop. Unfortunately, he also says prices will continue to go up into next year and continue the year after.