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Inflation may be falling, but not the cost of your car insurance

  • February 12, 2023

MIAMI – If you think news that inflation is easing means you’re not going to get hit with any more higher prices, think again.

At least, that is, if you’re paying for car insurance. There’s a very good chance your premiums this year will go up – by a lot.

The average cost of full coverage auto insurance has hit $2,014 a year nationally, up nearly 14% from last year, according to Bankrate’s annual True Cost of Auto Insurance Report, released Monday.

Why? It’s a lagging effect of high inflation from the last two years that resulted from labor and parts shortages, which in turn drove up the cost of paying insurance claims on car repairs and related insured expenses.

“Car insurance rates are reactionary,” said Cate Deventer, Bankrate’s insurance analyst.

But the good news, she added, is this: “If inflation keeps cooling we could see insurers file for rate decreases in future years.”

Plenty of other factors may increase your individual premium.

For instance, putting your teen child as a driver on your policy will jack up the rate.

Ditto if you got into an accident, had speeding tickets, or were convicted of a DUI.

Expect to pay more, too, if your credit score fell or you let your auto coverage temporarily lapse.

Another big factor in how much your premiums will cost is where you live.

“Each geographic area has different risks and costs of living, [so] the cost for car insurance varies across the nation,” Deventer said.

Among major metro areas, Bankrate found that average 2023 premiums rose the most in Orlando (up nearly 23% to $3,078), followed by Phoenix (up nearly 17% to $2,164). They fell the most in Philadelphia (down nearly 22% to $1,872) and New York City (down 14% to $2,649).

Meanwhile, as a

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Consumers increasing concerned with EV insurance

  • August 25, 2022

Canadians are becoming increasing interested in getting an electric vehicle (EV) for their next purchase on one hand, but consumers also seem concerned about the cost of insuring electric vehicles, according to data from rate comparison site My Choice.

Seventy-seven per cent of respondents in British Columbia and 74% in Ontario would consider buying an EV the next time they’re in the market for a vehicle, according to survey results from KPMG. Further to that, over three-quarters of millennials are looking at EVs for their next purchase (77% between 25-34 years old and 76% aged 35-44 years).

But cost, driving range and charging are often cited concerns that consumers have when it comes to EV uptake—and drivers are particularly concerned with the cost of insuring their green vehicle.

Drivers looking for EV insurance increased by 240% year over year and 89% in the last three months, according to a recent study by My Choice.

Consumers should also heed that insurance premiums depend on the model of the car, rather than the vehicle’s fuel source. The cost of Replacing a vehicle is largely what determines the insurance cost.

Reasons that EVs may cost more to insure than gas cars include: replacement parts, electric vehicle batteries and specialized repair shops.

The basic insurance requirements for EVs are the same as any car, and include the mandated third-party liability insurance, accident benefits insurance, uninsured auto insurance, and direct compensation for property damage.

Add-ons may include collision insurance and comprehensive insurance that protects parked cars from flood or fire events.

However, certain policies may provide relief for EVs. “Some insurance providers provide green vehicle discounts for EVs so it’s important to ask,” said Aren Mirzaian, CEO of My Choice in a press release.

A comparison by My Choice shows the annual auto premiums

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