SAN DIEGO — Like everything else these days, car insurance rates are on the rise.
According to the United States Department of Labor, rates are up 20.6% over last year. When compared to 2021, they're up over 50%.
In California, a Forbes Advisor's analysis revealed drivers pay an average of $2,061 per year for full coverage.
“Our latest data says that Californians pay about 20.7% more than the national average, said David Straughan, the senior automotive journalist for consumer site, Market Watch Guides.
Straughan says the hike is linked to various factors.
Among them, cars are more expensive, that includes for repairs on those that have advanced technology and intricate parts.
“If you get a dent in a doorway, or on like a bottom panel or something like that, like that might require replacing a lot more than just that one part. Whereas maybe 20 years ago, that wasn't the case,” said Straughan.
Tips
- Palmer says people should check with their car manufacturer to see if their vehicle has tracking capabilities.
- If it does, and you're not comfortable being tracked, make sure you've opted out.
- You can find out what data their vehicle is capable of collecting by submitting the vehicle identification number (VIN) at https://vehicleprivacyreport.com/.
- Drivers may obtain their LexisNexis consumer disclosure report by requesting it at https://vehicleprivacyreport.com/, and Verisk reports may be requested at https://fcra.verisk.com/#/.
- Finally, to save more on car insurance, consider upping your deductible, combining policies, and make sure you're consistently shopping around.
"So, a lot of people make the mistake of just letting their car insurance auto renew every year, every six months. But instead, you want to take a minute to compare prices, and pause. And that might mean shopping around and actually going to a different carrier or a different provider for car insurance," said Palmer.
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