A recent survey has found that the cost is a major cause of stress for many motorists.
The combination of the high annual inflation rate means that the cost of living is a growing challenge for Americans, and auto insurance has become a stressful concern.
A recent survey showed that 43 percent of insured drivers had experienced a rate hike since last year.
The survey was conducted by PolicyGenius. It showed that 43 percent of drivers were paying more in 2023 for their auto insurance coverage than they did in 2022. Similarly, 40 percent of insured drivers said that they were feeling stressed about being able to afford their premiums. This is particularly problematic as most states across the country require the coverage to be in place to legally drive.
There is a particular concern among Millennials and Gen Z. Over half (55 percent) of drivers between the ages of 18 and 34 years old said that they were feeling stress over their ability to afford their premiums. Another 24 percent said that they were “very stressed.”
Nearly half of drivers between 18 and 34 years considered driving without auto insurance.
The Policygenius Car Insurance Affordability Survey showed that in the last year, 45 percent of drivers between 18 and 34 years old had considered driving without having legally required coverage in place due to the cost. Of them, 17 percent had gone behind the wheel without coverage.
The most likely to have switched or thought about switching auto insurance companies due to high cost were drivers between the ages of 18 and 34 years old. Of them, 36 percent said that they had considered switching insurers due to high rates but hadn’t yet done so. Another 25 percent said that they had changed their insurers within the past year because their auto insurance premiums had been too costly.
“Our survey found that people are changing their behaviors, and sometimes even going so far as to take a major financial risk by driving completely uninsured,” said Policygenius licensed property and casualty insurance expert Andrew Hurst. “Car insurance is getting expensive for most people, but there are ways you can make your insurance more affordable. Re-shopping your insurance before it’s time to renew is the best way to make sure you’re getting the right coverage at an affordable price, but you can also check to see if there are any discounts you qualify for and adjust your coverage based on your car’s age and value.”