(CBS)
After two straight months of decline, consumer prices rose more than expected in January. Inflation jumped .05% last month to an annual rate of 6.4%. One of the key reasons why inflation remains stubbornly high is items like auto insurance, up nearly 15% over the last year.
Juan Maroso said the cost of insuring his Tesla in Miami gave him a whole new kind of sticker shock.
“My regular insurance was $2,400 for six months, and it went up to $4,000,” he said.
That’s nearly a 70% jump.
“It’s one more thing to add to the list, honestly, but it hurts. It definitely hurts,” said Maroso.
A new report by Bankrate.com found nationwide premiums have risen more than $240 dollars on average, topping $2,000 a year ($2,014).
Florida drivers saw the biggest jump, up $421 to almost $3,200 a year. In 2022, the average was $2,762; add $421 to that for 2023 and drivers are paying $3,183. As a percentage of average household income, drivers living in Miami now pay the most – 5.51%, or $3,447.
“There’s a lot of residents in Florida and the population is growing. Then we also see a lot of tourists, which of course adds to those busy, busy roadways, and that makes it even more likely that an accident is going to happen,” said Bankrate insurance editor Cate Deventer.
High costs for repair parts, labor, and medical care are driving insurance rates up across the board.
So what can drivers do?
Shop around and call your insurance agent to see if you’re taking full advantage of available discounts. Also, consider a smaller or cheaper car, and most importantly drive carefully because moving violations like speeding tickets could raise your rates even more.
WINK NEWS