Auto insurance prices are more than double what they were five years ago, forcing dr🦂ivers to cut or reduce their coverage to afford premium costs.

Motor vehicle insurance increased in January by 2.2% and was up 11.8% compared to the same time last year, according to Wednesday's Consumer Price Index report. Insurance prices have soared since the COVID-19 pandemic, more than doubling over the past five years.

Insurers have increased prices and reduced the number of offerings because COVID-related supply chains made car repairs more expensive, and more vehicles are being damaged in natural disasters.

Eight in 10 American drivers said insurance prices are now unaffordable for the average person, according to a recent survey by Jerry, a car insurance comparison app.

Price Increa🐬ses Force Some Drivers To Go Without Insur⛦ance

To offset the rising costs ♊of insurance, more than a quarter of drivers have bought less coverage, and 27% chose🎀 a higher deductible for a lower monthly payment.

About one in 10 drivers even dropped their car insura🦩nce for at least ꦰpart of the year because they couldn’t afford it.

Drivers have also cut spending elsewhere to afford car insurance. More t🐻han a quarter of drivers cut spending on groceries, 30% cut costs on clothing, and 32% spent less on family vacations.

However, price increases should slow in 2025 as insurers look to add more policies with competitive rates, said Josh Damico, vice president of insurance operations at Jerry. Rates should only increase by 2% to 3% this year as the market normalizes.