From Dow Jones & Company:

Auto insurance premiums in the U.S. are projected to continue increasing, with rates climbing more than 43% since January 2022, according to new research from Bankrate. The national average cost for full coverage car insurance was $2,543 per year as of January 2024, up 26% from $2,014 in January 2023. Insurance companies are reassessing their risk models due to increasing claims from higher vehicle repair costs and extreme weather, leading to increases for drivers with low credit-based insurance scores. The rising costs for vehicles, insurance, fuel, and repairs have brought the monthly expense of owning a car to $1,015 in 2023, up over 13% year on year, according to AAA. Additionally, more drivers are skipping auto insurance coverage as the cost of car ownership rises. Uninsured drivers can face fines for not having coverage and assume additional risk, including potential litigation if found at fault in an accident. If insurers follow through with the proposed rates, they could be “as aggressive” as last year, which was already a “watershed year” for premium hikes, said Stephen Crewdson, a senior director in the global insurance intelligence group at J.D. Power. The number of households who own a car but do not have auto insurance rose to 5.7% in the first half of 2023 from 5.3% in the second half of 2022, according to J.D. Power surveys. Bankrate also analyzed premiums in the 26 largest metro areas and found that drivers in the Detroit area are paying the most for insurance as a percentage of household income ($5,687), followed by Miami, Tampa, Philadelphia, and Las Vegas. On the other end, drivers in the Seattle metro area pay the least as a share of income, followed by Boston, Washington, D.C., Portland, and Minneapolis. If insurers follow through with the proposed rates, they could be “as aggressive” as last year, which was already a “watershed year” for premium hikes, said Stephen Crewdson, a senior director in the global insurance intelligence group at J.D. Power. It is advised to shop around for a better car insurance policy every one to three years or even every time your policy renews. You can save as much as 30% on your coverage. Make sure to check that your annual mileage estimate with your insurer is accurate, as lower mileage can lower your premium. Bundling your home and auto insurance can also get you a discounted rate. With the high prices, more customers will feel forced to reduce their auto coverage or forgo it completely. Make sure to shop around for a better car insurance policy every one to three years or even every time your policy renews as you can save as much as 30% on your coverage. Ensure that your annual mileage estimate with your insurer is accurate as lower mileage can lower your premium. Lastly, bundling your home and auto insurance can also get you a discounted rate.



Read more: Car insurance is up 43% since 2022. Here’s how to lower your premiums.