OHIO — A recent report shows car insurance premiums are increasing and are expected to rise until next year. 

What You Need To Know

  •  Car insurance premium costs are up from 2023 

  •  Inflation, catastrophic weather and labor rates are factors that are affecting the increase

  • Shopping around with other insurance companies and increasing deductibles could help save money 

Bankrate’s True Cost of Auto Insurance Report shows that the average annual cost for full coverage car insurance is $2,500 this year. That is 26% higher than last year.

Insurance experts believe inflation, catastrophic weather and labor rates have all affected the increase.

“It’s very difficult for insurance companies to make a profit right now, and that’s the goal,” said Ernie Dancer, a finance professor at The Ohio State University. “As a result, they’re raising rates on both homeowners and auto policies have been doing so for the last, I’d say two years for sure.”

But experts said to know there are options. Customers are encouraged to compare coverage costs from other insurance companies and consider increasing their deductibles.