Auto insurance rates are soaring, for several reasons:
Many insurers kept down rates in previous years, to build market share. Those low rates led to heavy losses so prices are being increased.
The widespread popularity of sport-utility vehicles (SUVs) is playing a role. Accidents are becoming costlier, especially after an SUV hits a smaller vehicle.
Medical costs are swelling, after years of moderate levels of health care inflation.
Not only are auto insurance premiums at record levels, they may differ greatly. One recent study found that the cost of a six-month policy varies an average of $524 from one company to another, for the same driver and coverage. In some areas, a 35-year-old driver can pay anywhere from $984 to $4,471 for the same coverage. It pays to shop around.