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Friday, February 24, 2023

The Daily Money: Why car insurance is costing more

Cars prices are going down but car insurance policies are going up. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 
usatoday.com

The Daily Money
 
Friday, February 24

TGIF! The weekend is in sight. Before you log off for the day here are our biggest stories  happening now. 

But first some USA TODAY news... 

We want our Daily Money readers to be the first to know about an exciting new partnership that's going to offer a steady stream of articles and reviews aimed at making navigating your personal finances – from budgeting, to credit cards, to insurance – a little bit easier.

Wondering how to get a license for your small business? Trying to find the cheapest car insurance? Looking for lenders with the best mortgage rates? Blueprint will have you covered. While it officially launches on Tuesday, you can get a preview now by clicking here.

Ok now back to the regular program.

The verdict is in : Plant-based milk products can officially keep the milk label, the Food and Drug Administration said yesterday. But companies like Oatly that make oat milk should include a note on their products alerting consumers to the nutritional differences between their product (labeled "milk") and dairy milk, the FDA recommends. 

For years, the dairy industry has pushed the FDA to prohibit the labeling of plant-based products asmilk.And under the Trump administration, the FDA had signaled plans to crack down on the use of the term for nondairy products.

Cars are getting cheaper, but insurance isn't

If you were holding off on purchasing a car until prices go down here's the good news: prices have dropped . But the bad news is it's costing a lot more to insure them

Drivers nationally are spending an average of 2.93% of their income on car insurance this year, based on an average annual premium of $2,014 for full coverage insurance and the national average annual income is $68,852, Bankrate said.

That amount rose from 2.57% in 2022 when the average premium was $1,771. And the difference means car insurance rates increased by nearly 14% between 2022 and 2023, compared with an overall rise in yearly inflation of 6.5% in December.

Car insurance rates are set to go even higher this year because of the exploding costs of repair parts, labor and claims, experts said. 

Body Image
Why is car insurance becoming more expensive?
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🍔 Today's Menu 🍔

If you're giving up meat for Lent (or just want to explore seafood and plant-based foods), you're in for some great deals! Check out all the great promotions going on here.

About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.

Elisabeth Buchwald is a personal finance and markets correspondent for USA TODAY. You can follow her on Twitter @BuchElisabeth.

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