Burning rubber: How auto insurance prices have fueled inflation

The sharp increase in auto insurance premiums has been contributing significantly to overall inflation. Several factors contribute to the rising expenses of auto insurance.

1. Increased Car Prices: The cost of new vehicles has been rising steadily over the past years due to inflation and the introduction of enhanced technology, making repairs costlier. When the cost of the car increases and the cost to repair it also increases, insurance companies naturally pass on these costs to consumers in the form of higher premiums.

2. High Repair & Medical Costs