Insurance prices are increasing due to inflation; how you can lower it

CAPE GIRARDEAU, Mo. (KBSI) – Growing concerns for the economy are at the forefront as inflation continues to impact many parts of the everyday American life.

Like most goods and services, inflation has increased the cost of auto and home insurance policies.

However, it won’t affect all drivers, as the cost changes are based on where you are located.

In Missouri, the cost of auto insurance has increased by 22% since 2020, making Missouri the seventh highest auto insurance with an average of $2,104 a year for premium.

“Cost for home repairs has gone up, the cost for materials has gone up, you know the cost for labor to repair that has gone up. The cost for auto parts so you know, time to repair vehicles, the number of crashes that’s generally going to impact everybody’s insurance across the board,” said Nick Chabarria, St. Louis AAA spokesperson.

Wage increases, labor costs and shortages, and replacement of refurbished parts have all increased as well. Insurance companies then must increase their prices to keep up with inflation.

But not all factors depend on economic status, according to Chabarria, as auto insurance can increase with a higher accident rate.

“We’re seeing crashes increase, were seeing the number of fatal crashes increase, serious injury crashes increase, that’s playing a factor,” continued Chabarria. “We can’t control the cost of inflation in general but what we can control is our actions behind the wheel, so we do know that, you know, safe driving does have a positive impact on insurance rates and in helping bring them down.”

You can contact your local insurance agent about available discounts, bundles, or other payment options to help keep that insurance policy down.

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