Ever since the pandemic ended, we keep hearing more and more of the word “inflation”. While inflation seems to be going down now with prices returning back to normal, the same cannot be said for cars. Owning a car is more expensive than ever, thanks to increasing maintenance costs and car insurance. According to the Bureau of Labor Services, of all items, car insurance has the highest annual cost increase.
The cost of car insurance has gone up by 43 percent since 2020 when the pandemic started. Furthermore, the 2023 year saw the highest spike in annual cost as owners spent 20 percent more than what they did in 2022. However, this wasn't always the case. During the pandemic, the cost of insurance was down by 5%. This was because of a lack of claims due to the nationwide lockdown. It was only when things came back to normal that the cost started to go up. Once the roads were active, the country witnessed its most dangerous year in a decade which in turn set the insurance rate up again.
With an average annual premium of $2,542, car insurance is not the only item that has gone up. Owning a car now costs an average of $50,000. Moreover, repair and maintenance costs are also becoming more expensive. This could be attributed to newer cars coming loaded with tech features. These tech features require sensors and digital instruments which are more likely to be damaged and require repair.
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