Inflation is killing us - and now we're seeing our car insurance rates going up as well. Rising inflation is hitting the Car Insurance Industry because car repair prices are climbing and some companies were hit when a lot of their customers stopped commuting. Bankrate Analyst Sarah Foster explains. "When inflation is popping up in areas that are required for your wallet - like car insurance - it's very hard for consumers to hide from." Texas and 48 other states have mandatory liability insurance laws - so it's not something you can scratch off your must pay list.
Foster says some financial counselors are advising consumers on how to knock out expenses so you can bolster your emergency fund - but that won't work here. "A lot of these insurance companies started to refund the premiums they charged. Now they're trying to rebuild-up the level of their claims reserves. Now repair prices are climbing and it's kind of squeezing them this year." Foster says every part of the automobile industry is hit hard by the lack of professional workers and scarcity of car parts due to supply chain issues. That raises repair costs and insurance pay-outs.
Her advice is to shop hard for your next premium.