For car insurance, 2024 will bring more of the same problems drivers faced last year. (iStock)
Drivers can expect much of the same this year for car insurance, with premiums continuing to soar and shopping options still constrained by providers ducking out of certain markets, according to a recent report from the Zebra.
Drivers paid an average of $1841 to insure a car in 2023, or 5% more than they did the previous year. That comes after a 15% jump between 2022 and 2023. Unfortunately, according to the report, 2024 is likely to bring more of the same.
More of the same factors driving increases in the previous two years are pushing costs up this year. Inflation has impacted auto repair costs, and drivers are submitting bigger claims. Extreme weather continues to be a factor contributing to increasing costs, as well as rising car thefts. With no relief in sight, drivers can expect to pay more for insurance premiums.
“I can say rates are high due to the record amount of catastrophic weather events over the last few years,” Hunter Black, an insurance agent at The Zebra said. “Also, insurance carriers gave out stipends during Covid and saw record auto claims once the pandemic ended due to more cars on the road. All of this affected insurance carriers’ loss ratios in a negative way, so increasing rates will help recover those losses.”
If you are looking to save money on your car costs, you could consider changing your auto insurance provider to get a lower monthly rate. Visit Credible to shop around and find your personalized premium.
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Where you live can significantly impact how much you pay for insurance. For example, states that are more affected by climate-related disasters have seen a higher incidence of insurance providers pulling out or writing new policies, leaving buyers with fewer options for insurance shopping.
The make and model of a vehicle has also greatly impacted car insurance costs. Drivers of Kia and Hyundai cars have had difficulty insuring these vehicles because of the high incidence of theft of certain models.
Florida and Louisiana top the list of states with the highest annual premiums. Drivers here pay an average premium of over $2,700 per year. That’s 47% more than the national average. Drivers in Vermont and Idaho pay the least, with annual premiums registering 35% below the national average. Drivers in 19 states now pay an average of more than $2,000 a year in auto insurance premiums.
Are you shopping around for new auto insurance? The Credible marketplace can help you compare multiple providers and find your personalized rate in minutes without affecting your credit score.
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Americans won’t get any relief from insurance prices in 2024, but drivers can still save money by looking for new opportunities to save with their current carrier or by switching. These are some other options to consider for keeping your auto insurance affordable:
If you are struggling with rising prices and want to save money, you could consider finding a new auto insurance provider to lower your monthly premium. Visit Credible to compare multiple car insurance providers at once and choose the one with the best rate for you.
Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.
