(WXYZ) — We all know inflation has made prices for nearly everything skyrocket, from gas prices to groceries, and now, we are seeing car insurance rates spike as well.
How are people dealing with the rise in car insurance prices? I went out to speak with people after the Bureau of Labor Statistics released new data showing prices went up more than 22%.
“I have never had an accident and I’ve been driving since I was 16, never had an accident," Dr. Crystal Morrison from Detroit told me.
“Still high insurance?" I asked.
“Yeah, we pay over $450 a month," She said.
Morrison said she's constantly dealing with a surge in car insurance prices.
“Why the insurance rate is so much higher, it does not compute," she said.
I spoke to another Detroit resident who switched car insurance companies in order to save money.
“What’s the highest you’ve paid and what’s the lowest you’ve paid?” I asked.
“Highest would be $600 and the lowest would be $226," Marcus Lee told me.
I also caught up with a Warren resident who said if he didn't have to have car insurance, he wouldn't.
“At these prices, I would keep my money and keep going on with life," Chris Smith said.
Ferndale resident Michael Bushman said his car insurance went up after he moved here from Ohio.
“As soon as I moved up here, as soon as I put that address in, my insurance doubled, probably more than doubled," he said. “I think we’re close to like $500 between me and my wife, I’m over 40, she’s close to 40."
Why are prices soaring? Doug Heller, the director of insurance from the Consumer Federation of America, said there are two main factors
“Car repairs still is pretty high so that’s a pressure point for insurance companies, so they have to fix our cars and the cost of repairs is going up and part of that is just inflation," Heller said.
Another factor is that the insurance industry has a lot of power in the marketplace.
“All of us has to buy auto insurance, so they have a captive market," he said.
Meanwhile, Morrison has hopes that drivers will soon feel a little relief when it comes to car insurance.
“I think that rate is going to change, it’s going to get better," she said.
Heller said if you are looking to get cheaper rates, the best thing to do is shop around different companies and compare prices.
