Why Your Raise Is Finally Beating Car Insurance Premiums

In Episode 56 of Wages and Prices, Lucas and Luna dig into a surprising turn in the cost of living: car insurance premiums, which soared over 20% annually through much of 2024 and 2025, have finally slowed to single-digit growth. Meanwhile, average hourly earnings in the private sector hit $37.50 in May 2026, up from $37.41 the month before. The hosts explore why premiums are cooling—fewer accidents post-pandemic normalization, better loss ratios for insurers, and state regulatory pressure—and how that shift is giving workers real purchasing power relief. They also reference the latest CPI data (334.0 in May) and the employment cost index (177.5 in early 2026) to show that wages are still climbing faster than many sticky costs. A practical episode for anyone who's noticed their auto insurance bill isn't rising as fast as it used to. #CarInsurance #WageGrowth #Inflation #CostOfLiving #Economics #Podcast #WagesAndPrices #FexingoBusiness #BusinessPodcast #AutoInsurance #CPI #EmploymentCostIndex #PurchasingPower #InsurancePremiums #PayRaise #WorkersRights #PersonalFinance #USEconomy Keep every episode free: buymeacoffee.com/fexingo