It is becoming increasingly challenging for borrowers to stay current on their car payments due to the rising insurance costs. The motor vehicle insurance index saw a 1.8% increase in April, following a 2.6% rise in March, as reported by the Bureau of Labor Statistics’ latest CPI report released on May 15. This surge in auto insurance costs amounts to a 22.6% increase overall.
FAQ
Why are insurance costs rising?
Insurance costs are on the rise due to various factors such as increased risk factors, rising claim payouts, and inflation.
How can consumers mitigate the impact of rising insurance costs?
Consumers can shop around for competitive insurance rates, consider adjusting their coverage levels, and explore discounts or bundle options.
Conclusion
As insurance costs continue to climb, it is essential for consumers to be proactive in managing their expenses and exploring cost-saving strategies to ensure they can keep up with their auto payments.
