Far More Drivers Are Doing This As Car Insurance Rates Surge

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Happy male driver
Nestor Rizhniak / Shutterstock.com

Auto insurance costs are soaring, and that might be motivating more drivers to shop for a better deal.

In the first quarter of this year, the number of consumers shopping for auto insurance jumped 6% compared to the first quarter of 2023, according to a recent analysis of data by the credit reporting company TransUnion.

The number of shoppers in the first quarter was a five-year high and followed strong activity in the fourth quarter of 2023.

Shoppers were particularly active in the West and Midwest. TransUnion speculates that a rising cost of living in those two regions is pushing drivers to look for new policy options that help them save money.

Auto insurance rates have risen more sharply in the Midwest than in any other region over the past two years, TransUnion reports. Traditionally, the Midwest has seen the lowest car insurance rates of any region.

Meanwhile, many drivers in the West also are seeking price relief by shopping for a new policy. Others are being forced to shop as insurance companies implement new underwriting restrictions in the region.

The cost of car insurance is climbing at a rapid rate. As of April, motor vehicle insurance prices were up 1.8% from one month earlier and 22.6% from one year earlier, according to the U.S. Bureau of Labor Statistics.

By comparison, the overall inflation rate rose 0.3% month over month and 3.4% year over year in April.

If you want to cut your car insurance costs, perhaps the best thing you can do is to shop around and compare quotes from a number of insurers.

For more tips on cutting auto insurance costs, check out the “12 Ways to Lower Your Car Insurance Bill.”

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