Hickory Sun

The nation's rising inflation has started to have an impact on car insurance prices in the state of North Carolina.

Inflation is impacting insurance and prices in a whole range of other industries as well. The Wall Street Journal recently reported the changes that car insurers are making in response to the nation's increasing rate of inflation.

“I’ve seen premium increases in the range of 5%, 10% and even 15%" Doug Heller, insurance expert with Consumer Federation of America, told Marketplace. "That throws a huge wrench in the budget of people who are really just struggling to get by.”

Industry executives and analysts say that a number of car insurance companies are increasing their premiums by 6 to 8% or even by double digits. The Wall Street Journal also reported that Allstate, a home and auto insurer, is increasing its rates by an average of 7.1% across 25 states. The company also warned that additional hikes are coming soon.

The Wall Street Journal reported that some consumer activists are opposed to the increases because they say that insurance carriers reported profits during the COVID-19 lockdowns. Carriers retort that they temporarily reduced programs and other premiums to deal with the pandemic.

According to the most recent report from Bankrate, the average annual cost for minimum coverage car insurance in the state of North Carolina is $413, while the average annual cost for full coverage is $1,325.

On Jan. 12, the U.S. Bureau of Labor Statistics released the consumer price index (CPI) data for the month of December. The data demonstrated a 7% increase for the year, which is the biggest increase in 40 years, since 1982. The CPI also increased 0.5% from November 2021, demonstrating that inflation has continued to increase on a month-to-month basis.

The CPI is a measure of inflation, which takes into account the cost of scores of everyday consumer goods.