Americans Aren’t Happy About Car Insurance Rate Hikes

Drivers are feeling squeezed to the point of breaking.

If you haven’t seen your car insurance rates increase in the past year, you’re one of the lucky ones. Most people have experienced at least a modest hike in their premiums, with many getting a big shock when their insurance carrier announced their rates are skyrocketing. With inflation making everyday necessities more expensive, many Americans feel the car insurance situation is pushing them over the financial edge.

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That would explain why J.D. Power found a 12 point drop in car insurance customer satisfaction in its annual study. That’s the largest decline the firm has recorded in 20 years. J.D. Power claims that dissatisfaction has led some drivers to sign up for usage-based insurance policies where telematics monitor driver behavior to calculate rates.

Not everyone is signing on for what some consider an invasion of privacy. Considering how unhappy consumers are with insurance companies lately, it’s not hard to imagine why there would be a loss of trust.

The big question so many ask is why car insurance rates have been increasing so much lately? The fact is there are many factors feeding into the current situation, even though some only want to focus on one or two.