In this episode, Patrick Bet-David explains why Auto Insurance prices are skyrocketing above everything else, hurting the budgets of struggling American families.




 

In this episode, Patrick Bet-David explains why Auto Insurance prices are skyrocketing above everything else, hurting the budgets of struggling American families.

Over the past year, consumers have faced steep increases in auto insurance costs, with premiums rising by an astonishing 22.2 percent last month compared to a year earlier, the highest surge since the 1970s. This surge tops the list of price hikes across various sectors, such as new vehicles prices, which have hardly budged, and used vehicle prices have increased by just 2.2 percent.

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However, despite the steep climb in insurance rates, companies are not profiting as expected. In 2022, auto insurers reported a loss of 12 cents for every dollar in premiums.

So, if it isn’t car prices, and if the auto insurance companies are losing money even with the price hikes, what is the cause behind them?

One significant factor is the alarming rise in auto thefts. According to the Council on Criminal Justice, motor vehicle theft rates jumped by 29 percent last year alone and have more than doubled since 2019. These thefts contribute to higher claims and, consequently, higher insurance premiums.

Watch the rest of the video to learn more about rise in auto theft.


Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.

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