How Inflation Is Impacting Car Insurance Rates | Rooster
Rising costs are affecting everything, and car insurance is no exception. If you’ve noticed your premiums creeping up, you’re not alone. But how inflation is impacting car insurance rates—and what can you do about it? Let’s take a closer look.
Why Are Car Insurance Costs Rising?
Inflation has driven up prices across the board, and car insurance is being hit from multiple angles:
Higher repair costs – Vehicle parts and labour costs have risen due to supply chain disruptions and increased demand.
Increased claims payouts – With rising medical and legal costs, insurers are paying more for claims, which leads to higher premiums.
More expensive new and used cars – Car prices have surged, making replacements and repairs costlier than before.
Rising theft rates – An increase in car thefts means insurers are facing higher risks and adjusting their pricing accordingly.
How Inflation Affects Different Drivers
New Drivers – Higher premiums due to increased repair costs and risk factors.
Experienced Drivers – Still impacted, but No Claims Discounts may help offset costs.
Luxury & High-Performance Car Owners – Hit the hardest due to expensive repair and replacement costs.
What Can You Do to Reduce Your Car Insurance Costs?
Even with rising prices, there are ways to keep your premium low:
Compare quotes before renewing—never auto-renew without checking alternatives.
Increase your voluntary excess to lower your premium.
Improve your driving habits to build a No Claims Discount.
Reduce your annual mileage if possible.
Park your car securely in a garage or driveway.
Find the Cheapest Insurance Despite Inflation with Rooster
Wondering how inflation is impacting car insurance rates and how to save? Rooster searches over 100 providers to find you the cheapest quote, whether it’s with us or another insurer. Like a comparison site, but better.
Download the Rooster app today and find a great deal on car insurance!
