The auto insurance market is struggling with multiple challenges, resulting in sharp auto insurance premium increases for consumers. According to some estimates, the average auto insurance policy is expected to cost 8.4% more in 2023, representing the largest increase in car insurance costs in six years.

The U.S. Bureau of Labor Statistics (BLS) reported that the consumer price index (CPI) rose 6% year over year in February, slightly down from 6.4 % in January. This is the eighth consecutive month the CPI has declined and marks the lowest reading since September 2021. As such, the CPI increase was in line with predictions as it’s slowly but steadily declining.