It's never been more expensive to insure a car in the US.

According to data from the Bureau of Labor Statistics,

the average annual cost of full coverage,

it's more than $2,500.

That's up for more than $2,500. That's up for more than $1,700 in 2021.

And according to a recent report in the New York Times,

the cost of car insurance rose 20% in the last year alone, the largest increase since

1976.

So what's going on?

Well for starters, cars are really expensive.

According to Kelly Bluebook last year the average price of a new vehicle

was more than $48,000. And used cars well they aren't exactly a bargain either, with an average price of about $27,000.

New or used, things that cost more to purchase cost more to ensure.

The rising price of cars, as well as high interest rates on auto loans,

has led drivers who not too long ago might have replaced a damaged car to have it repaired instead.

That in turn has increased the price of parts and labor.

Then you add in supply chain issues, computer chip shortages, the expense of repairing a lot of vehicles today,

even after a minor fender bender, and you'll see why drivers are submitting higher claims

to insurance companies. Those insurance companies

then pass their costs on to their customers in the form of higher

deductibles and higher premiums. It's a vicious cycle. Oh and did I mention the cars that get damaged by floods or fires in the latest climate disaster?

Yeah, that is a problem that's only going to get worse.

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