In Alaska, much like the rest of the country, people rely on their cars for everything: commuting to work, grocery shopping, accessing healthcare services, and more. In a state with virtually no public transportation, which has only declined even more since Capital Transit announced it would have to suspend bus routes due to staff shortages, owning a car is not a luxury.
Yet, the cost of car ownership has reached unprecedented levels, with recent data revealing that car insurance premiums rose 26% over the last year. The escalating expenses associated with car ownership, including repairs, gas, highway tolls, and other unavoidable costs, make this number climb even higher. For many Alaskans, these rising costs are making car ownership increasingly more expensive and sometimes completely out of reach.
Against this backdrop, pending legislation in Alaska threatens to exacerbate the growing affordability crisis for the state’s residents, pushing car prices even higher and favoring the profit margins of already rich auto dealers at the expense of everyday consumers.
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Steve Pociask is the president and CEO of the American Consumer Institute. He has been involved in consumer public policy research for 40 years. He has published numerous economic studies, including three books for the Economic Policy Institute, and policy studies for numerous independent nonprofit organizations. Many of his research studies have focused on the consequences of public policies on consumer welfare.