Vehicle Insurance Soars
Inflation in the segment adds to laundry list of cost increases in automotive.

As insurance costs increased, vehicle maintenance and repair costs rose 7%.
IMAGE: Pexels/Mikhail Nilov
Car insurance premiums are rising more than many other consumer costs, according to a recent Consumer Price Index report, adding to car buyers’ already heavy purchase burden.
The U.S. Bureau of Labor Statistics reported that motor vehicle insurance jumped 20.3% last year, far outpacing other segments’ increases.
Meanwhile, vehicle maintenance and repair costs rose 7%.
The bureau didn’t include analysis on the factors in the increases, but they parallel the surge over the past three years since the pandemic’s onset in vehicle prices and car accidents, along with rising vehicle theft.
Inflation brought on by the pandemic has left consumers with much higher vehicle purchase prices already, though those have started to come down and incentives have returned. At the same time, interest rates soared last year as the Federal Reserve has worked to cool inflation.
Still, new-vehicle affordability improved in November to its best point in two years as consumer incomes and vehicle incentives grew, Cox Automotive said. And the Fed has stopped raising rates as it waits to see if inflation falls to its 2% target.
Originally posted on Auto Dealer Today
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →