With the annual inflation rate still at 5%, Americans are paying higher prices for everything---and essential financial services are no exception. In fact, an exclusive new survey reports 43% of insured drivers in the U.S. are paying more for their car insurance than they were last year at this time.
Perhaps unsurprisingly, 40% of insured drivers say they're stressed about being able to afford car insurance, a requirement for drivers in most states, adding to the broader anxiety Americans feel around the pressures on their wallets. This is especially true with many millennials and Gen Z---more than half (55%) of drivers age 18 to 34 are stressed about being able to afford auto insurance and 24% say that they're "very stressed."
Other findings from the Policygenius Car Insurance Affordability Survey include:
- 45% of insured drivers ages 18 to 34 say they've thought about driving without car insurance because of the cost in the past year, and 17% have actually done it.
- Younger drivers (18 to 34) were the most likely to have switched or considered switching car insurance companies because of high costs
- 36% said they had thought about changing car insurance companies because of high rates in the past year but haven't switched yet
- 25% said they switched companies in the last 12 months because their car insurance was too expensive
"Our survey found that people are changing their behaviors, and sometimes even going so far as to take a major financial risk by driving completely uninsured," said Andrew Hurst, licensed property and casualty insurance expert at Policygenius. "Car insurance is getting expensive for most people, but there are ways you can make your insurance more affordable. Re-shopping your insurance before it's time to renew is the best way to make sure you're getting the right coverage at an affordable price, but you can also check to see if there are any discounts you qualify for and adjust your coverage based on your car's age and value."
Policygenius commissioned YouGov to poll 2,780 American adults (aged 18+), 2,134 of whom confirmed having car insurance. The survey was carried out online from April 12 through April 14. The results have been weighted to represent all U.S. adults. The margin of error was between +/- 1.1% and +/- 2.1% depending on the question. Percentages were rounded to the nearest whole number, so some totals may not add up to 100.
Source: Policygenius
