The U.S. Bureau of Labor Statistics reported that from January 2022 to January 2023, the average nationwide increase in auto insurance prices was 14.7%, a figure that still holds due to the cost of repair parts, labor, and claims. Chris DiMartino, Senior Vice President of Insurance Services with AAA, said the reason auto insurance prices are increasing is because traffic is back, and there are more frequent and expensive repairs needed. DiMartino advised customers to ensure all their information is accurate with the insurance company and to take advantage of discounts wherever possible. Additionally, he suggested increasing deductibles on collision and comprehensive coverages to save money, but warned consumers to be conscious of their decision, as higher deductibles might mean paying more in case of an accident. Although the industry tends to move in cycles, DiMartino predicts a return to a “little bit more normal cycle” within the next 6 to 18 months.

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