--- title: Car Insurance Rates Are Rising Faster Than Anything Else in the Economy description: Prices have risen 16% in a year, and by 1.7% from May to June alone. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 600 covers: - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Paul Reynolds role: Senior Editor, Special Projects url: https://money.com/author/paul-reynolds/ bio: Paul Reynolds is the Special Projects Editor at Money.com, with responsibilities that have included launching franchises in best autos and best airlines. Prior to his current role, he joined Money in 2020 as its insurance editor, overseeing life and auto insurance content as well as the site’s coverage of policies for pets, autos, businesses, travel and more. education: BA, Psychology, Queen's University (Canada), Bachelor of Journalism, Carleton University (Canada) at_money_since: 2020 articles: 95 covers: - Banking - Business - Debt - Economy and Politics - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes social: - https://linkedin.com/in/paulreynoldsed/ former_staff: true published: '2023-08-02T14:23:02.000Z' modified: '2023-11-02T19:12:37.000Z' section: Everyday Money tags: - News word_count: 392 canonical: https://money.com/car-insurance-inflation-2023/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Car Insurance Rates Are Rising Faster Than Anything Else in the Economy](https://money.com/content.money.com/wp-content/uploads/2023/08/News-Car-Insurance-Premiums-Increased.jpg?crop=0px%2C0px%2C2874px%2C1617px&resize=1012%2C569&quality=85&strip&ssl=1) Inflation is cooling for most items in the economy, but auto insurance continues to be an exception to the trend. New data suggests that hikes in car premiums continue to [outstrip those of the economy as a whole](https://money.com/inflation-june-2023-rent-insurance/), and the gap may even be widening. In a [new survey](https://www.experian.com/blogs/ask-experian/new-auto-insurance-carrier-survey/) by Experian of over 1,000 car owners, more than half (52%) of respondents reported their [car insurance](https://money.com/best-auto-insurance/) premiums had increased in the past six months. And the hikes were likely to be substantial, according to the latest federal inflation numbers. Car insurance premiums rose by an average of 16.9% from June 2022 to June 2023. That’s the most of any expenditure [tracked by the Bureau of Labor Statistics](https://www.bls.gov/news.release/pdf/cpi.pdf). From May to June alone, rates rose by an average of 1.7%, which suggests the rise in premiums is accelerating. (By contrast, annual inflation averaged 3.0% across the economy as a whole, the index reports.) Experts say [insurance companies are facing higher costs](https://money.com/why-auto-insurance-prices-higher/) in a variety of areas — including auto repairs, medical care and car replacements — and those increases are being passed along to policyholders. High rates for collisions and vehicle theft are also contributing to the upward trend in car insurance prices. The news is not all bad. Car insurance prices stayed roughly the same for 34% of respondents to the Experian study, and 14% say they’re paying less than they were in 2022. There’s also evidence that [more drivers facing higher insurance costs are shopping around among carriers.](https://money.com/shop-around-cheap-car-insurance/) ## An Extended Car Warranty lets you drive with confidence ### Endurance offers extended protection for your vehicle. Click on your state for a free quote today. [See Details](https://money.com/pr/e1c3e005477f?ap_referrer=%2Fcar-insurance-inflation-2023%2F) ## Why it matters Car insurance represents a significant part of Americans' budgets — typically about 2.5% of household spending — so as premiums rise sharply, customers will take notice. - Drivers are indeed shopping around for [better car insurance rates,](https://money.com/compare-car-insurance-rates/) according to Experian's data. In the past year, 41% of auto insurance customers shopped around for rates and 22% of customers switched insurance providers, the survey found. - What's next for auto insurance prices? Unfortunately, experts expect premiums to rise even further in the months ahead. A key reason is that vehicle repair and replacement costs will likely remain high, according to a report from [Carrier Management](https://www.carriermanagement.com/news/2023/07/20/251004.htm), an information service for the insurance industry. ## An Extended Car Warranty can protect you against costly repairs ### Endurance offers extended warranties that protect your vehicle for up to 250,000 miles. For a free quote, click below and get started. [See Details](https://money.com/pr/f84a6a706c21?ap_referrer=%2Fcar-insurance-inflation-2023%2F) ![](https://s3.consumersadvocate.org/prd/image/image/28512/medium_1ae7409e-8425-4103-9204-bfe70b5e6c0b.png) Stop paying for costly car repairs and get an Extended Car Warranty! [See Details](https://money.com/pr/ub9375bc33e8?ap_referrer=%2Fcar-insurance-inflation-2023%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/car-insurance-inflation-2023/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Everyday Money", "item": "https://money.com/section/everyday-money/" }, { "@type": "ListItem", "position": 3, "name": "News", "item": "https://money.com/tag/news/" }, { "@type": "ListItem", "position": 4, "name": "Car Insurance Rates Are Rising Faster Than Anything Else in the Economy" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/car-insurance-inflation-2023/#webpage", "url": "https://money.com/car-insurance-inflation-2023/", "name": "Car Insurance Rates Are Rising Faster Than Anything Else in the Economy", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2023-08-02T14:23:02.000Z", "mainEntity": { "@id": "https://money.com/car-insurance-inflation-2023/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/car-insurance-inflation-2023/#breadcrumb" }, "dateModified": "2023-11-02T19:12:37.000Z" }, { "@type": "NewsArticle", "headline": "Car Insurance Rates Are Rising Faster Than Anything Else in the Economy", "articleSection": "Everyday Money", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/08/News-Car-Insurance-Premiums-Increased.jpg?quality=85", "width": 2880, "height": 1920 } ], "author": [ { "@type": "Person", "name": "Pete Grieve", "url": "https://money.com/author/pete-grieve/", "@id": "https://money.com/author/pete-grieve/#author", "description": "Pete Grieve is a personal finance reporter. 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