Wallethub – Why have car insurance premiums been increasing over the past years?
There are multiple reasons for this. Real factors: The cost of repairing vehicles has increased (for example, electric vehicles could be more expensive to repair than traditional gas-powered cars). There has also been an increase in the number of accidents and other risk factors, all of which raise the real cost of providing car insurance.
Nominal factors: Since premiums are quoted in dollars (or in money), inflation also drives up the dollar (or money) amounts needed for coverage, contributing to premium increases.
