Rising car insurance rates hitting drivers
Sep 6, 2023, 11:00 AM | Updated: Feb 7, 2024, 8:58 am
(Photo/Gene J. Puskar, ASSOCIATED PRESS)
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SALT LAKE CITY — Much like everything else, car insurance is getting more expensive. Some states are seeing as high as a 50% increase over the past year.
Insurance in states like Florida and Colorado went up more than 50%. Utah’s car insurance costs have increased at a slower pace than many states only going up 2% over the past year.
Driving the car insurance spike
Insurance agencies blame it on the increased prices at body and repair shops and the rising costs of used cars.
The Bureau of Labor Statistics recently reported a 13% increase in vehicle maintenance costs.
A spokesperson for State Farm said they expect the cost to continue going up as maintenance, repairs, and the cost of used cars increases.
As a solution to the growing costs, some Americans are downgrading their insurance plans to liability-only. The downgrades are resulting in drivers paying for much less coverage.
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