Car insurance costs are on the rise, with the average annual premium for full coverage auto insurance in the U.S. increasing to $2,543 in 2024, up 26% from the previous year, according to a report by Bankrate. Factors such as longer repair times, expensive rental car costs, and rising car repair expenses are contributing to the spike in prices.
Stephen Crewdson, senior director of insurance business intelligence at J.D. Power, noted that insurers have been aggressively increasing premiums in the past year, leading to a situation where consumers are struggling to find lower premium rates. Around 215 million Americans have auto insurance, with the market valued at approximately $353 billion, according to IBISWorld.
The increase in auto insurance rates is impacting consumers and large companies like Allstate, Progressive, and Berkshire Hathaway’s Geico. To learn more about the reasons behind the rising premiums, watch the video linked here.
Car insurance rates in the U.S. have been on the rise, with the average annual premium for full coverage auto insurance reaching $2,543 in 2024, a 26% increase from the previous year. The rising prices can be attributed to factors such as longer repair times, more expensive rental car costs, and the increasing cost of fixing cars. Insurers have been aggressively increasing premiums over the past year, leading to a situation where consumers are finding it difficult to find an insurer with lower premiums. This trend has impacted the 215 million Americans who carry auto insurance and has also affected large publicly traded companies in the auto insurance industry, such as Allstate, Progressive, and Berkshire Hathaway’s Geico.
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