Why car insurance costs have soared (and what drivers are doing about it)
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NPR's series Cost of Living: The Price We Pay is examining what's driving price increases and how people are coping after years of stubborn inflation. How are higher prices changing the way you live? Fill out this form to share your story with NPR.
What's the item?
Car insurance
How has the price changed since before the pandemic?
On average, premiums are up 55% since February 2020, according to the Bureau of Labor Statistics. (Almost all of that increase came between 2022 and 2024.)
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Why has the price gone up?
Cars are more expensive; parts and repairs are more expensive; medical bills following auto accidents are more expensive. Modern cars are packed with pricey electronics, pushing up the cost of fixing even minor fender-benders, while empty streets during the pandemic encouraged speeding and led to more severe (and more expensive) crashes.
All those things cost insurers money.
Patty Kuderer is the insurance commissioner for the state of Washington; when insurance companies want to
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