Why Car Insurance Keeps Getting More Expensive (2024)

The cost of auto insurance in the US rose more than 22% in the 12 months that ended in March, the biggest annual jump since 1976. Rates are up 43.7% since January 2020, making car insurance premiums one of the bigger contributors to high inflation. Here’s why:

Today’s cars are packed with high-tech gadgetry meant to entertain, comfort and protect occupants. The array of safety equipment now common on cars includes automatic emergency braking, blind-spot detection and lane departure warnings. To give drivers eyes in the back of their head, automotive engineers have embedded cameras, sonar and radar sensors from bumper to bumper. All that technology has driven up the cost of repairing even a minor fender bender.