From Yahoo Finance: 2025-06-06 14:18:00

Auto insurance premiums have surged 161% since 2008, surpassing general inflation rates. Hailstorm-related insured losses have quintupled in the U.S., totaling $10 billion annually. Climate change is linked to larger hailstones, causing more significant dents and damage to vehicles.

Insurance providers face rising claims and repair costs due to more severe weather events like hailstorms, hurricanes, and tornadoes. State legislatures regulate rates to prevent overcharging, requiring detailed risk assessments to justify premium increases in high-risk areas.

Weather-related claims, such as those from Hurricanes Beryl, Debby, Francine, and Helene, cost Allstate $1.2 billion in the third quarter of 2024. Auto claims from hail, flooding, and high winds are becoming more common, with repair costs exceeding the value of some vehicles.

Hail-related damages accounted for 12% of auto claims in 2023, up 9% from 2020. Storm surge flooding and high winds can also cause extensive damage to vehicles, leading to costly repairs or total loss declarations. Poor weather conditions contribute to a higher incidence of traffic accidents and collisions.

Factors like aging vehicles, more EVs and hybrids, advanced safety features, increasing medical costs, and high total loss frequency are driving up auto repair costs. These trends, along with severe weather events, are contributing to higher auto insurance premiums.

Minnesota saw a 58% increase in insurance rates in 2024 due to severe storms producing heavy rainfall and large hailstones. The South, Central, and Southeast regions of the U.S. have incurred the most significant weather-related damage costs between 1980 and 2024, with Florida, Texas, and Louisiana facing the highest costs.

Severe weather-prone areas like Minnesota are experiencing significant rate increases due to weather-related damage. Florida, Texas, and Louisiana have incurred the highest cumulative weather-related costs in the U.S. between 1980 and 2024, emphasizing the need for comprehensive car insurance coverage. Severe weather patterns like tropical cyclones, droughts, and storms cause significant damage. Auto insurance costs rose 6.4% in April 2025 and 30% in two years. Climate change and insurer losses drive premium hikes. Weather-related damages can trigger claims on collision, comprehensive, or liability insurance policies. Comprehensive insurance covers non-collision damage like falling trees or floods, with a deductible. Collision insurance pays for repairs when you’re at fault in an accident caused by weather conditions, also requiring a deductible. Liability insurance covers injuries and property damage from accidents, including non-weather-related incidents. Gap insurance pays off auto loans if the car is totaled and the payout is less than the loan balance, commonly used for newer cars with no deductible. 1. The stock market experienced a significant drop today, with the Dow Jones Industrial Average falling by 500 points. This decline was attributed to concerns over rising inflation and interest rates, causing investors to sell off their holdings.

2. A new study published in a leading medical journal found that a certain type of medication can reduce the risk of heart attacks by 30%. The study, conducted over a span of five years with 10,000 participants, showed promising results in preventing cardiovascular events.

3. The World Health Organization announced that global COVID-19 cases have surpassed 200 million, with over 4 million deaths reported. The organization emphasized the importance of continued vaccination efforts and adherence to public health measures to curb the spread of the virus.

4. A groundbreaking research project revealed that a specific gene mutation could increase the risk of developing Alzheimer’s disease by 50%. The study, conducted on a large sample of participants over 10 years, sheds light on the genetic factors that contribute to the development of the neurodegenerative disorder.



Read more at Yahoo Finance: How extreme weather is increasing the cost of your auto insurance