After years of rising price trends in much of the country, 2024 is likely to continue the trend
The price of everything appears to be continuing to rise, and many experts predict that auto insurance rates will be among those increasing prices consumers must face.
Coverage since the pandemic has steadily become more expensive
The cost of auto insurance depends on several factors, including everything from an individual’s driving record to the type of vehicle they drive, and a number of other elements depending on the state in which they are purchasing coverage. This can include anything from the driver’s gender to their ZIP code or credit score.
Still, on average, the price of full-coverage policies in the United States rose by 24 percent in 2023 according to a recent WFLA report.
States such as Florida, Michigan and Connecticut are examples of states in which drivers pay substantially more for coverage based on the state in which the policy is purchased. That said, in more states than not, premiums are expected to rise this year.
Among those being cited by insurers is that the cost of car parts and of repairs is climbing. Moreover, the cost of new and used vehicles is also on the rise. As a result, claims are getting more expensive and insurers are paying out more to cover repairs and replacements when vehicles are involved in collisions, other forms of damage, or theft.
According to data released by the Bureau of Labor Statistics, there has already been a 20.6 percent year over-over-year increase in auto insurance premiums in 2024. This represents the largest average rate hike the country has seen since December 1976, when rates jumped 22.4 percent in one year.
Other contributing factors
Aside from the cost of repairs and replacements, there are a number of other factors that are contributing to the rise in premiums drivers are paying on a monthly basis for their auto insurance coverage.
These include issues such as increases in collisions, an increase in collision severity, and the locations in which the collisions are occurring.
