There’s some bad news ahead for the nation’s car owners, with a new report forecasting that auto insurance — one of the biggest drivers of inflation this year — will continue to rise in 2024. In fact, residents of three states could see their coverage rates spike by 50% in 2024.
That’s according to a new report from Insurify, a company that provides data about auto insurance rates. The typical U.S. insurance policy will jump 22% this year to an average annual premium of $2,469 by year-end, the report found. That comes after drivers saw their policies jump 24% in 2023, it noted.
The three states where insurance rates could jump by more than 50% this year are California, Minnesota and Missouri, the Insurify report found. Drivers in those states could see their rates rise by 54%, 61% and 55%, respectively.
Auto insurance remains a pain point for consumers after experiencing more than two years of elevated inflation. And even as the overall inflation rate is cooling — the Consumer Price Index dropped to 2.9% in July, the first time since March 2021 it’s dropped below 3% — drivers are continuing to see their policy rates rev up, fueled by more climate events that are causing vehicle damage.
“Increasingly severe and frequent weather events are driving up auto insurance premiums,” Insurify said in its report. “Hail-related auto claims represented 11.8% of all comprehensive claims in 2023, up from 9% in 2020, according to CCC Intelligent Solutions.”
R&I ~ MJM
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