One in three U.S. drivers now struggle to pay for auto insurance

Most auto insurance customers have not shopped around for competitive prices and services in five years or more, says Way.com.

As of June 2022, consumer prices were up 9.1%, which was the largest increase in 40 years, according to the U.S. Bureau of Labor Statistics. (Photo: B-D-S Piotr Marcinski/Shutterstock)

A new study confirms that many auto insurance customers in the United States are feeling the pinch from 2022’s historic inflation.

This was revealed in the results of a recent survey conducted by Way.com, the driving app and website that serve as a “car service marketplace” that allows users to locate parking, schedule car washes, shop for vehicle insurance and more. Roughly 6.5 million drivers reportedly use the service.

Way.com interviewed 1,000 drivers to explore how the current economy impacts their insurance usage and choices. The survey showed that 34% of respondents are struggling to pay auto insurance premiums. That same percentage of drivers said their current auto insurance costs more than $200 a month.

As of June 2022, consumer prices were up 9.1%, which was the largest increase in 40 years, according to the U.S. Bureau of Labor Statistics. Gasoline and other fuels saw the steepest price increase among an array of consumer products.

It also has been reported that auto insurance premiums are expected to continue to rise into 2023, which corresponds with a steady uptick in vehicle demand and prices.

“We’ve never seen dual inflation like this in the 25 years I’ve been in the industry,” Way.com Senior Director of Insurance Sales Ezra Peterson said in a blog post about the company’s recent research. Peterson suggested that this might be an ideal time to shop around for competitive auto insurance rates and services, “especially if you’ve been with the same carrier for years.”

Roughly three out of four of Way.com survey respondents said they’ve had the same auto insurance carrier for five years or more.

“Car insurance is not one-size-fits-all,” Way.com researchers concluded. Coverage “should be customized based on a specific person’s needs.”

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