Will inflation affect my car insurance rates?

car insurance rates and inflation

Inflation is the talk of every news outlet, holiday dinner table, and family budget discussion this year. The price of goods is up, as are mortgage rates, and it seems American families are getting squeezed from every direction. So can you expect inflation to affect your car insurance rates, too? Read on to find out.

Will inflation affect my car insurance rates? 

Car insurance rates have increased by nearly 20% since 2020, and they are expected to continue to increase throughout the next year. If you haven’t seen these rate increases in your auto insurance bills yet, expect to see them when your policy renews in 2023.

Why inflation makes car insurance premiums increase 

Inflation affects everything. Things like car repairs, replacement parts, bodywork, and medical care that your auto insurance must pay for after a claim have all increased with inflation. Auto insurance companies are passing those increased costs on to ratepayers with higher premiums.

What can I do to lower my car insurance rates? 

Fortunately, there are plenty of things you can do to lower your car insurance rates so your monthly premiums stay the same or even decrease as the newer, higher rates go into effect.

  • Get a multi-car discount – If you have multiple cars in your household, consider putting them all on the same auto insurance policy. Many times, you’ll pay significantly less for your car insurance premiums when you insure all the vehicles on one policy rather than each vehicle separately.
  • Take a defensive driving course – The more defensive driving training you have, the less likely you are to have an accident and file a claim, so your car insurance company may lower your rates. You can find several options for defensive driving classes online, but make sure to check with your insurance company first to find out if the course you are considering is accepted by your carrier.
  • If there’s a student in your home, get the Good Student discount – Many car insurance companies offer a discount to student drivers who get good grades.
  • Increase your deductible – A higher deductible can save you thousands on your car insurance premiums throughout the year. Just remember, if you get into an accident and need to file a claim, you’ll be required to pay more upfront before your insurance kicks in.
  • Trade down – Bigger, more powerful, more expensive vehicles cost more to insure. Consider trading in your gas guzzler for a smaller economy car that can be insured for much less.

We can help you find affordable car insurance in South Carolina 

Getting the best rate for car insurance is about more than just saving money. Edwards Insurance Agency in Taylors, S.C. can help you find an auto insurance policy that protects you and your family without breaking your budget. Give us a call today!