The newest Consumer Price Index shows car insurance spiked 20 percent year over year. The surge in pricing occurred after years of gradual price inflation, with earlier reports finding the rates grew by 36 percent since 2020.That's at the same time debt is soaring for many Americans. While Americans hold around 1.75 trillion in student debt loans alone, they also have $1.05 trillion in credit card balances not paid off.
'Today's higher premiums are just a reflection of those higher costs.'But one piece of the puzzle that many auto consumers might not be aware of is the impact of electric vehicles on the insurance industry.The sudden rise of electric vehicle purchases also carried some of the blame, since EVs are more expensive to purchase and repair, Henn said.The implications of the jolting rates are far-reaching, but there are still ways to combat the price hikes.