Why have insurance rates gone up so much in the past year?

The main reason auto insurance rates are increasing is because the cost of repairing your car after an accident has risen significantly - due to inflation and global supply chain problems. 

This means auto insurers now pay significantly more for covering the cost of your car damage, even if the amount of people having accidents stays the same. To offset these higher costs, they are raising your rates.

From January to August 2023, more than 30,000 people have applied and received quotes through OCHO, resulting in over 200,000 total quotes. 

The average initial quote for someone looking for basic, "liability only” coverage increased by 43% from $746 in January 2023 to $1064 in August 2023. 

The average initial quote for someone looking for “comprehensive and collision” (C&C) coverage, (which is required for someone with an auto loan or lease), increased by 54% from $1416 in January to $2178 in August.

Despite these increases, OCHO's job is to find you the best rates and, with OCHO Pay, to help you afford these higher rates by allowing you to spread your policy amount evenly into twelve smaller payments over six months. 

If you’d like more information on this, we did a deep dive in our blog, you can check it out here

We also highly recommend reading this article by The Washington Post for a deep dive into the rising costs of auto insurance in the US.