The latest figures from the U.S. Bureau of Labor Statistics are almost enough to force folks off the road – a 19 percent increase in auto insurance rates. Dr. Aaron Yelowitz is an economics professor at the University of Kentucky’s Gatton College of Economics. He has a few theories about the massive increase.
“Car prices and repair costs are going up. Also related to that, in every sector, there are shortages -- labor to repair cars. I've even seen this one when I've gotten my car serviced, right, changing the oil, it just takes longer.”
Yelowitz said the labor shortage also makes repairs more expensive, which also drives insurance costs up. He noted there’s something every driver can do about it.
“So the kind of call to action would be, every three years you need to kind of do a financial audit on yourself and ask whether things are really working for you.”
Yelowitz said some insurers offer low introductory rates, then slowly increase them – so people who switch should still keep an eye on the bottom line of their monthly bill.
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