Why Is Car Insurance So Expensive?
Before the pandemic, the rapid expansion of many major cities was also expanding the distances between home and work for many Americans. Add to this a rise in population, and the result is a growing burden on public transportation. It’s just one of the many reasons why car ownership has become a necessity for many individuals.
But the reality is, owning a car is still considered a luxury of sorts. Often, the challenging aspects of owning a vehicle extend beyond the initial purchase. Maintenance, repairs, and the seemingly endless rise in the cost of gasoline make owning a vehicle a potentially expensive venture. Then you have the price of car insurance.
The average annual insurance cost in the U.S. is $1,555, which can easily surpass all other expenses of a well-maintained vehicle. But why is insurance so pricey?
Let’s explore the reasons why car insurance is so expensive.