Car insurance rates are surging as Americans struggle to pay for basic necessities and ongoing debt.

Car insurance rates are surging as Americans struggle to pay for basic necessities and ongoing debt.

The newest Consumer Price Index shows car insurance spiked 20 percent year over year. The surge in pricing occurred after years of gradual price inflation, with earlier reports finding the rates grew by 36 percent since 2020.

That’s at the same time debt is soaring for many Americans. While Americans hold around 1.75 trillion in student debt loans alone, they also have $1.05 trillion in credit card balances not paid off.

  • blurg@lemmy.world
    9·
    10 months ago

    The way the market works: You charge a competitive price that allows you to cover your costs and make a profit. If your product provides enough value to the buyer, they’ll pay for it.

    That’s what’s taught. There’s quite a bit more in practice, including: what insurance companies learned from management consultants.

    But they aren’t colluding to eek every ounce of money from people.

    Maybe so, though there appears to be a common interest.