‘Barron’s Roundtable’ panel provides insight into the increasing pressures on consumers.
Motorists across the country are feeling the pinch as auto insurance premiums continue to rise, according to a new report.
Nationally, the cost of full coverage auto insurance increased to $2,543 this year, or $212 per month, an increase of 26% over the past year, according to a report released by Bankrate.
According to the U.S. Census Bureau, the national median household income is $74,580, which means Americans currently spend on average about 3.41% of their income on auto insurance, the report said. ing.
“Car insurance rates are rising at a breakneck pace,” Greg McBride, Bankrate’s chief financial analyst, said in a statement. “And while the pace of increases will eventually slow, that doesn’t mean premiums will go down.”
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Cars for sale are on display at a car dealership in Carlsbad, California. (Reuters/Mike Blake/File/Reuters Photo)
To determine the cost of auto insurance, Bankrate analyzed the total percentage of household income spent on auto insurance and assigned a true cost ranking to each state and 26 metros nationwide.
According to the report, drivers in Detroit have the highest net average cost and actual cost of auto insurance, with 7.98% of their income spent on auto insurance.
Seattle drivers spend the lowest percentage of their income on car insurance.
Neil Dutta, head of economic research at Renmac, argues that inflation will dictate when the Fed cuts rates to “make money.”
In Louisiana and Florida, which have experienced severe weather in recent years, drivers are paid an average of 6.53% and 5.69%, respectively. In Wyoming, driver insurance premiums will drop $1 starting in 2023 to $1,581 in 2024.
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In addition to inflation, several factors affect the cost of auto insurance, including population density, the driving habits of other people living in your state or zip code, and extreme weather events.
An individual’s driving history, vehicle type, and credit history are also taken into consideration.
