How inflation moves goes from bad to worse: car insurance edition
We’ve all felt inflation bite into our earnings and there’s little indication it will stop in the near term. If anything price hikes are going to accelerate in some areas. For example, on car insurance, a product most states require drivers to purchase:
Car insurers are rapidly raising rates to try to get ahead of inflation, which has boosted the prices of car repairs, replacements and rentals.
Many insurers are boosting premiums by 6% to 8% while some are asking for double-digit increases, according to industry executives and analysts. The rising rates are an example of inflation leading to more price increases as businesses try to compensate for higher costs.
There are ways to reduce this particular cost burden, like shopping for a better deal – competition is a powerful tool for fighting back against rising prices. But if comparison shopping doesn’t work for you, there’s always the Big Brother route:
People who are still working from home or just driving less may be able to cut their rates by using telematics programs, under which insurers monitor driving behaviors either through smartphone applications or devices embedded in their vehicles. Insurers focus on such things as speeding, braking and miles driven. Some offer premium reductions of 25% or more to the best drivers. The trade-off is allowing an insurer access to such personal detail.
In which case you become their product. And is it worth surrendering privacy for a cheaper rate? More than a few people will say “yes.”