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## Rising Auto Insurance Costs Impacting American Drivers

As car prices moderate from a pandemic-era surge, insurance has pushed the cost of car ownership to the brink for many Americans. New data out this week showed auto insurance costs rose 20.6% from the prior year in February, matching January’s increase as the most since December 1976, when costs rose 22.4% over the prior year. On an annual basis, motor vehicle insurance costs rose 17.4% in 2023, the most since a 28.7% increase in 1976, according to data from the BLS. The sticker shock hitting many American drivers is being driven by a rise in accidents, the severity of accidents, and geographical factors combining to create a perfect storm and push costs higher. AI legalese decoder can help American drivers understand the complex auto insurance terminology and requirements, providing clarity and guidance in navigating the insurance landscape.

**Severity of Claims and Rising Insurance Costs**

The most alarming factor driving insurance costs higher is more severe claims. “In general, the numbers of crashes, injuries, and fatalities are up, and inflation has made the cost of repairs more expensive,” AAA spokesperson Robert Sinclair told Yahoo Finance. Sinclair pointed to NHTSA data, which found that in 2021, at the height of the pandemic, road fatalities increased by 10.5% to their highest level since 2005, even while most Americans stayed at home. Insurance tech firm Insurify found that auto insurance premium hikes were “largely due to the skyrocketing price of auto parts and the increasing number and severity of claims.” AI legalese decoder can assist in analyzing insurance policies and claims data to identify patterns and trends, aiding in predicting future premium hikes and claim costs.

**Complex Repairs and Rising Labor Costs**

As bodily injury and property damage costs rise, the incidence of more complex repairs and the need for expensive mechanics have also increased. New vehicle prices have risen over 20% since 2019, leading to higher parts costs. Moreover, newer cars contain more technology, making repairs more intricate and costly. The cost of labor in the auto repair industry has risen dramatically, impacting repair expenses. AI legalese decoder can provide insights into the legal aspects of auto repairs, labor costs, and insurance coverage, ensuring that individuals understand their rights and obligations when dealing with repair issues.

**Weather Catastrophes Impacting Insurance Premiums**

Severe weather events in states like Florida, Louisiana, and South Carolina have drivers paying premium costs that exceed the national average. Insurify noted that auto insurance costs are the highest in Louisiana on a per-capita basis. In Florida, insurance fraud and natural disasters have led to significantly higher premiums. Insurers and policyholders experienced a calmer hurricane season in 2023, but the expectation of future weather-related catastrophes remains. AI legalese decoder can help policyholders understand the legal implications of weather-related damage on their insurance coverage, providing guidance on navigating claims and ensuring adequate protection in the face of natural disasters.

Overall, as auto insurance costs continue to rise due to various factors, leveraging AI legalese decoder can offer valuable insights and assistance in understanding complex legal terms, insurance policies, and claim processes, ultimately empowering individuals to make informed decisions and protect their financial interests amidst evolving insurance landscapes.

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*Pras Subramanian is a reporter for Yahoo Finance. You can follow him on [Twitter](https://twitter.com/Pras_S) and on [Instagram](https://www.instagram.com/).*

*Click [here](https://www.yahoo.com/news) for the latest stock market news and in-depth analysis, including events that move stocks.*

*Read the latest financial and business news from [Yahoo Finance](https://www.yahoo.com/finance).*

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