Surging auto insurance rates squeeze drivers

(26 Apr 2024)
RESTRICTION SUMMARY:

ASSOCIATED PRESS
Denver – 24 April 2024
1. Various of traffic near downtown

ASSOCIATED PRESS
Denver – 25 April 2024
++COVERED++
2. SOUNDBITE (English) Vincent Plymell, Colorado Division of Insurance: x
“Insurance is more expensive these days. I think the Consumer Price Index report recently said that it’s gone up 22% compared to this time last year.”

ASSOCIATED PRESS
Denver – 25 April 2024
++PARTIALLY COVERED++
3. SOUNDBITE (English) Vincent Plymell, Colorado Division of Insurance:
“So the reason for increases in auto insurance are, One: Just more dangerous driving due to distracted driving and speeding and things like that. Two: More expensive repairs. Cars are just more expensive to repair. The technology in them, the cosmetic things. And also the more dangerous driving is leading to more damaged cars. Three: more expensive cars, in general. New cars and used cars are more expensive these days. And four: an increase in auto thefts, around the country.”

ASSOCIATED PRESS
Denver – 24 April 2024
4. Various of traffic near downtown
5. Various of signage and cars at dealership

ASSOCIATED PRESS
Denver – 25 April 2024
++PARTIALLY COVERED++
6. SOUNDBITE (English) Vincent Plymell, Colorado Division of Insurance:
“To do anything, you need a car. And so that’s going to impact people, everyday people, just on the things they need to do in their lives. Then think about the impact to people that actually use their car for their jobs, delivery or rideshare, anything like that. That’s, that’s another, a huge increase in, in their costs that they have to, to run their business.”

ASSOCIATED PRESS
Denver – 24 April 2024
7. Various of Ahmed Eloumrani getting into his car, starting it and driving
8. SOUNDBITE (English) Ahmed Eloumrani, Denver tour guide:
“Been paying average between $200 a month to $400 for coverage a month.”
9. Eloumrani driving
++COVERED++
10. SOUNDBITE (English) Ahmed Eloumrani, Denver tour guide:
“It’s, it’s very hard to find the cheapest commercial insurance. It’s not only me. It’s other people that are trying to start a small business, especially in transportation.”
11. Eloumrani driving
++PARTIALLY COVERED++
12. SOUNDBITE (English) Ahmed Eloumrani, Denver tour guide:
“I have to work more, you know, hustle more to be able to, to afford that.”
13. Eloumrani driving

ASSOCIATED PRESS
Denver – 25 April 2024
++PARTIALLY COVERED++
14. SOUNDBITE (English) Vincent Plymell, Colorado Division of Insurance:
“Hopefully the further we get away from the pandemic, some of those things that were caused by the pandemic, the chip shortage that caused an increase in the price of new cars, which had a knock-on effect on the used car market. Hopefully the labor shortages in terms of getting cars repaired evens out or becomes a little bit better. So hopefully that has a an impact on the market as well.”

ASSOCIATED PRESS
Denver – 24 April 2024
15. Various of vehicles at dealership
STORYLINE:
Relentlessly rising auto insurance rates are squeezing car owners and stoking inflation.

Auto insurance rates rose 2.6% in March and are up 22% from a year ago. Premium costs have been marching steadily higher since 2022, even as inflation at the consumer level steadily cooled from its 9.1% peak in the middle of that year.

Consumers have had some relief as the rate of cost increases for food and energy, two key components of most budgets, has eased greatly.

But auto insurance and car ownership costs have become a sticking point for consumers and the Federal Reserve in its battle to rein inflation back to its goal of 2%.

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Author: admin