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How inflation affects car insurance — and what you can do about it

Written by Yahoo Finance | Mar 31, 2026 4:00:00 PM

Higher prices on car repairs and medical treatments increase what car insurance companies pay to resolve claims. Insurance providers often don’t absorb those increases — they pass them to you as higher auto insurance premiums.

Find out which claims-related costs are getting more expensive, why these trends are affecting your insurance rates, and what you can do to keep car insurance affordable.

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