Why Is Car Insurance So Expensive?

Several factors have contributed to the high cost of car insurance. Disruptions from the Covid pandemic led to increased used car prices and parts shortages, while more accidents occurred as drivers returned to the roads post-lockdown. Technological advancements in vehicles have also made repairs more expensive. Despite some improvements for car owners, insurance rates have surged, with a 22% increase over the past year, marking the fastest rise since the 1970s. The average annual car insurance premium reached $1,280 in 2023.