A stubbornly high inflation report released this week indicates that the Federal Reserve may be forced to delay interest rate cuts that were previously projected for May. While the 3.1% year-over-year inflation reading is significantly down from last year’s 6.4%, the month-over-month data came in above analysts expectations at 3.4% and doesn’t seem to be trending toward the Fed’s 2% target anytime soon.
Why are we telling you this? Because it actually has to do with insurance.
The inflation report is a reading from the Federal Reserve’s preferred inflation gauge known as the Consumer Price Index or the CPI. The CPI averages out a “basket of products and services” that consumers frequently use to describe as accurately as possible how quickly prices are going up. Out of all essential products and services, do you know what went up the most year over year? Auto insurance.
On a year-over-year basis, auto insurance jumped 20% which is the largest yearly increase since 1976. That’s huge! In other words, the average $100 per month policy is now $120 with companies expecting to enact more rate hikes over the next 12 months.
In response to this, some Americans are slashing their coverages in hopes of saving a few dollars on their auto premiums. This is a historically bad idea that leaves price-strapped consumers exposed to liability in case of an at-fault accident.
Instead of slashing coverages or opting for state-minimum insurance coverages, our team shops your unique needs with dozens of insurance providers to find a policy that fits you. As prices remain a problem for everyone, shop smarter, not harder, by letting our team of experts help you protect what you value most.