Automotive insurance coverage is getting dearer. The common annual premium for full coverage auto insurance within the U.S. rose to $2,543 in 2024 — up 26% from the earlier 12 months, according to Bankrate.
Elements similar to longer restore occasions and dearer rental automotive prices are leading to rising costs, in response to a report by the American Property Casualty Insurance coverage Affiliation.
Additionally, automobiles are becoming costlier to fix.
“Up to now about 12 months we’re in an atmosphere now the place basically all insurers have aggressively elevated premiums,” stated Stephen Crewdson, senior director of insurance coverage enterprise intelligence at J.D. Energy. “That has led to an atmosphere the place the buyer, the insured, is out looking for auto insurance coverage and discovering that they can’t discover an insurer that has a decrease premium for them.”
Round 215 million People carry auto insurance and the market is valued at roughly $353 billion, in response to IBISWorld.
So, what different elements are behind the spike in auto insurance coverage charges and what influence are rising premiums having on customers and huge publicly traded firms similar to Allstate, Progressive and Berkshire Hathaway’s Geico?
