It’s bad enough that average transaction prices for new cars are hovering near $48,000, straining consumers’ ability to pay for them — the cost of insuring new cars is also up dramatically post-pandemic.

Auto insurance rates increased 17.8% between July 2022 and July 2023, according to the Bureau of Labor Statistics’ Consumer Price Index.

The steep increase is largely due to inflation, increased auto parts costs and climate change, based on a new analysis from MarketWatch Guides. While inflation fell to 3.2% in July from its 9% peak last year, the price increases it caused are likely to be permanent, the report found.

Automotive maintenance costs have risen 13% over the past year, driven by weaknesses in the global supply chain and the Russian war with Ukraine. When cars cost more to repair, insurance providers pay more in claims and then pass those increased costs onto customers. Longer wait times for car repairs are also prompting more drivers to add rental car reimbursement to their coverage, adding to insurers’ payouts.

“The longer [drivers] have to wait for their vehicles to be fixed after a claim, the more money insurers pay for their transportation,” the report said, adding that consumers are waiting an average of 4.8 days for their vehicles to be repaired — up from 3.5 days in 2021. “It’s yet another expense insurers are recouping with higher premiums.”

Wildfires, floods and other natural disasters caused by climate change are leading to more comprehensive claims to replace or repair a vehicle that is stolen or damaged without being in a collision.

To save money, MarketWatch Guides recommends comparing quotes from different companies each time an auto policy is up for renewal and dropping unnecessary coverage based on an individual’s driving habits.

Some insurers also offer discounts for good driving, good credit or taking safety classes, as well as for bundling different types of insurance such as homeowners and car coverage.