Skyrocketing auto insurance premiums are fuelling inflationary pressures in USA. Costs have been rising at their fastest ever rates. Premiums jumped 2.6 per cent in March alone, which means costs are whopping 22.2 per cent higher than this time last year. increases contributed to inflation rising by 0.4 per cent last month. No other category of spending has soared as much as auto insurance. Foxbusiness.com said average cost of car insurance in US has surpassed $2,300 per year, which amounts to about $192 month. rising prices are impacting lowest paid most. Insurance is becoming more of financial burden for those struggling to make ends meet in cost of living crisis.
Automotive analyst Sean Tucker tried to explain what is behind rising prices. He said: "I think biggest factor is combination of new cars and [them being] more expensive, so if you [wreck] your car, replacement cost is really high, and fender bender is very expensive right now." He attributed sophistication of technology, gadgetry and safety equipment in modern cars to more expensive repair and replacement costs. The cost of replacing battery in electric car can range from $6,500 to well over $20,000. simple fender bender is likely to damage costly embedded sensors, cameras and sonar. One factor driving up labour costs is shortage of car mechanics.
