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INDIANAPOLIS — A recent Bankrate study shows that the national average cost of car insurance has hit an all-time high. Drivers in the US are paying an average of $2,543 per year or $212 per month for car insurance, which is a 26% increase from 2023.
According to Dan Kiesle, the insurance director of AAA Hoosier Motor Club, this increase is due to inflation and rising labor and car prices. The average cost of auto insurance in Indiana increased by 0.45% to $1,634 per year in 2023.
“That 25% is pretty accurate here in Indiana, too,” said Dan Kiesle, the director of insurance for AAA Hoosier Motor Club. “It’s the sign of the times. It’s inflation. The labor rates are up to fix cars. They’re more expensive if you need to buy parts to fix cars or buy a car altogether.”
The Bankrate report said the average price for auto insurance in Indiana was $1,634 a year, a 0.45% increase from 2023.
“These come in cycles in our industry. It happens every eight or ten years. This one has gone on a little longer than usual, but the pandemic was anything but usual, right? So. we still have a hangover from that,” Kiesle said.
