“`html

Understanding Auto Insurance Inflation: Insights and Implications

Auto insurance is a significant part of most household budgets, representing about 2.5% of annual expenditures, similar to what is spent on electricity or clothing. With such expenses, finding savings can make a substantial difference in one’s finances. O1ne Mortgage is here to help you navigate these costs effectively. Call us at 213-732-3074 for any mortgage-related needs.

Auto Insurance Inflation on the Rise

Despite lower inflation in much of the economy, auto insurance premiums have been increasing. According to data from the Bureau of Labor Statistics (BLS), auto insurance premiums rose by 17% over the past year, outpacing the increase in car prices. This trend is notable as used car prices have actually decreased over the same period.

However, most drivers are not switching insurers or even looking for new ones. An Experian survey conducted in July 2023 revealed that 78% of drivers stuck with their existing insurance carrier in the past 12 months, and 59% haven’t explored potential deals from competing insurers.

Impact of Income on Premium Increases

Households with higher incomes are more likely to report an increase in their auto insurance premiums. For instance, 64% of households earning over $150,000 annually reported an increase, compared to 47% of households with incomes under $100,000. This disparity may be due to the higher cost of insuring electric vehicles, which are more popular among higher-income households.

Claims and Customer Satisfaction

Nearly 20% of drivers surveyed by Experian made at least one claim in the past 12 months. Most claimants reported a positive experience, with close to three-quarters satisfied with both the claims process and the settlement received. However, 8% were not satisfied with either the process or the settlement. Most claims were settled within three weeks, regardless of satisfaction levels.

The Importance of Comparison Shopping

While comparison shopping doesn’t always result in premium savings, it’s the only way to find out. With inflation decreasing for most goods and services, the rising cost of auto insurance premiums will likely become more noticeable. Given that auto premiums already cost consumers an average of $2,100 annually, increased scrutiny of premium prices is expected.

For any mortgage-related needs, O1ne Mortgage is here to assist you. Call us at 213-732-3074 to explore your options and find the best solutions for your financial situation.

“`