Car Insurance Skyrockets
Consumers are now juggling another high cost on top of high loan payments, vehicle prices.
The auto insurance index jumped more than 22% in the past year, far exceeding that of medical care, for instance, which rose just 2%.
IMAGE: Pexels/Vlad Deep
Auto insurance costs are soaring as consumers already face high sticker prices and loan interest rates.
The March Consumer Price Index report shows the auto insurance index jumped more than 22% in the past year, far exceeding that of medical care, for instance, which rose just 2%.
In March alone, the auto insurance index increased 2.6% following about a 1% increase in February.
Online insurance comparison and purchase company Insurify said increasing repair costs as vehicle technologies get more intricate and expensive, in addition to climate change-related weather factors, are driving up auto insurance costs. It predicts a slowing in rate increases, though it forecasts a 7% jump this year.
Insurify said the rate growth is far outpacing wage increases. It puts the national average annual cost for full vehicle coverage at $2,019, or 2.6% of the median U.S. household income.
Many consumers lower coverage limits and raise deductibles to compensate for the rate increases.
DIG DEEPER: What Does the 'I' Stand For?
Originally posted on Auto Dealer Today
More F&I
How AI-Powered Coaching Is Transforming F&I Performance
See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
Read More →
Sell Value, Build Trust
In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.
Read More →
F&I Sales Give Dealers First-Half Lift
Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.
Read More →
Targeted Training Drives Results
Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.
Read More →
Double the Change, Double the Chance
When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.
Read More →
Just Do It
F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Leading with Purpose
In this video, Trent White explains how understanding your people’s 'why' is a key leadership responsibility of F&I professionals and how that mindset drives dealership engagement, trust and performance.
Read More →
Integrating Nontraditional F&I Products
The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.
Read More →
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →