Auto insurance prices are definitely a piece of the larger puzzle contributing to overall inflation. So how exactly do auto insurance prices fuel inflation?
1. Premium Increases: Insurance companies periodically increase premiums, especially when they have to cover claim costs from a high number of accidents, natural disasters, or vehicle theft. A rise in auto insurance premiums contributes directly to inflation as it increases the overall cost of owning a car.
2. Higher Repair Costs: Modern cars equipped with complex technology are more costly to repair, resulting in
