Auto insurance customers are feeling the burn of inflation. | Tobi/Pexels
Auto insurance customers are feeling the burn of inflation. | Tobi/Pexels
People across the country are experiencing a drastic rise in prices for everyday goods and services, and car insurance rates have not been immune to this.
Car insurers have been responding to rampant inflation by raising premiums at an alarming rate, with some companies even going into double-digit percentage increases, The Wall Street Journal reported.
"I've seen premium increases in the range of 5%, 10% and even 15%," Doug Heller, an insurance expert with the Consumer Federation of America, told Marketplace. "That throws a huge wrench in the budget of people who are really just struggling to get by."
Allstate, a home and auto insurer, is increasing premiums in 25 states by 7.1% on average, The Wall Street Journal reported. The company also confirmed that more increases are coming.
The decision by many insurance companies to raise rates has not been popular. Consumers are against the increases, arguing that insurers recorded formidable profits during the COVID-19 mass quarantine period, The Wall Street Journal reported. Carriers said that they temporarily lowered rates in response.
The average annual cost for minimum coverage car insurance in Georgia is $756, while the average annual cost for full coverage is $1,982, Bankrate reported on Jan. 6.
This is a significant increase from 2021, when the average annual cost for minimum coverage in Georgia was $640, and full coverage was $1,746, Coverage.com reported on Jan. 29, 2021.
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