Expert says: Comparison shop every year for best car insurance rates
Understanding rising car insurance costs
Experian reports car insurance rates have risen 22 percent in the last year and seventeen percent the year before that. The FOX 5 I-Team's Dana Fowle talked to the number crunchers at Experian about what they see and what you can do to mitigate some of that financial pain.
ATLANTA - It seems that for a few years now, car insurance rates have been steadily increasing. Experian reports that in the last year, rates have risen by 22%, following a 17% increase the year before.
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What’s behind this? The ripple effects of the pandemic, inflation, rising repair costs due to modern cars being mobile computers, and lingering global supply chain disruptions have all contributed. These factors have tightened household budgets.
While some costs, like mortgage rates, gas prices, and groceries, are dropping, car insurance rates continue to rise. According to Experian's Director of Consumer Advocacy, 75% of people surveyed fear that insurance costs will keep climbing. To combat this, they recommend shopping around for better rates, and Experian offers a free insurance marketplace where consumers can compare options based on their needs.
Rod Griffin, Senior Director of Consumer Education and Advocacy at Experian, emphasizes that by using such services, consumers could save about $800 a year. He also suggests looking for good driver discounts, benefiting from good grades for young drivers, maintaining good credit, driving older cars, bundling services, and even taking defensive driving courses online to help lower insurance costs. The key takeaway: regularly compare policies to ensure you’re getting the best deal.