Edit the Mobile Menu
 

Inflation Impacting Car Insurance Rates

Inflation is affecting all aspects of life, from higher prices of food and other consumer products to basic necessities, like car ownership expenses. Yes, even with the availability of public transit, most Americans consider owning a car a necessity, particularly for Americans who have to commute to work and those living in rural areas. Since the pandemic, even those who used to use public transit have now turned to driving their own vehicle due to recurring Covid surges. Inflation is impacting all aspects of car ownership, from the cost of purchasing a new or used car, car loan payments, and paying for gas, car maintenance and insurance.

Bankrate’s analysis and the CPI show the annual cost of car insurance continues to accelerate. The average cost of car insurance is now $1,771 per year for full coverage, while minimum coverage averages $545 per year. Cost of car insurance also varies, depending on where you live.

In Iowa, Bankrate indicates the average minimum premium is $252 and $1,260 for full premium coverage. Fortunately, Iowa drivers spend an average of $517 less per year for full coverage insurance than the national average. Low vehicle maintenance costs, a low cost of living and low population density may contribute to low insurance costs. In addition, Iowa drivers spend less time in traffic on their commute than drivers in 48 other states, which may help reduce insurance costs. Nevertheless, savings more on every expense is important when the cost of goods and services is rising.

Bankrate suggests the following strategies to save on car insurance to help car owners cut costs without sacrificing adequate coverage. These include:

Stay insured -  A lapse in coverage could cause insurers to perceive you as a higher risk to insure, leading to higher premiums. Also if you get into an accident without coverage you may end up footing the bill and could even bankrupt you if mounting medical expenses are involved.

Bunde your car insurance with other policies – You can save money by bundling car insurance with homeowners or renters insurance.

Compare rates from multiple providers. Even while your vehicle is currently insured, it is always good to shop around to make sure your policy has the best rates.

Consider raising your deductible amount. Having a higher deductible will lower your premiums, but make sure you are comfortable with a larger deductible amount.

Make sure you get all the discounts. If you are working from home now and driving less, ask for a low mileage discount and other discounts that may apply to you.

By researching different vehicle’s annual ownership costs and carefully selecting an auto insurance policy that adequately covers your car and you, you can assure your own safety and able to comfortable afford the rising costs of car ownership.

When in the market for a used car, stop by Carousel Preowned. CarouselPreowned serving Iowa City, Cedar Rapids, Davenport, North Liberty, Marion, and Coralville, IA, is proud to be an automotive leader in our community. We do our best to ensure your complete satisfaction every time you step into our car dealership. This is why we offer the widest selection of used and pre-owned cars, trucks, and SUVs and provide true ease of purchase in Iowa.

© 2022 Carousel Preowned. All Rights Reserved. | Responsive Dealer Website provided by SurgeMetrix