BIRMINGHAM, Ala. (WBRC) – New cars are expensive. Used cars are expensive. Now the cost of auto insurance is going through the roof.
Some families are struggling to pay.
Kimberly Miller is among them. She’s had a clean driving record for more than a decade.
“I can’t remember the last time I had a speeding ticket,” she said.
But like so many other people, rates on her Chevy Equinox have been rising sharply.
“Up and up and up,” she said. “Every six months, it’s gone up.”
Recently, her rate jumped from $188 to $210 a month.
Miller isn’t the only one seeing these big jumps.
Auto insurance premiums are up over 25% the past year, according to the insurance industry.
Agent Michael Barry says it’s due to a combo of the soaring cost of auto parts and labor rates.
“Years ago, you’d have a rear end collision, and it might be $1,000,” Barry said. “But now that same collision might result in the broken rear view camera. Now all of a sudden, it’s a couple of $1,000.”
So what can you do?
- Compare companies at a site like the Zebra or Nerdwallet.
- Then ask your current insurer if they will match.
- Older car? Consider dropping collision coverage.
And for your next car, consider one cheaper to insure, like a Toyota Camry or Rav-4, or Honda CRV, Honda Odyssey minivan, Subaru Forester.
As for now, Miller says she will just have to find the money.
“You’d have thought that loyalty would mean lower rates,” she said. “The only thing I get is first in the line to call.”
So shop around so you don’t waste your money.
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