New Report: Car Insurance Costs to Increase 7% in 2024 After 24% Hike in 2023
Key trends in car insurance prices 2024
Auto insurance rates soared a shocking 24% in 2023 as the rising cost of repairs, climate catastrophes, and severe car accidents contributed to record losses for insurers.
As the insurance industry stabilizes in 2024, Insurify predicts rate hikes will slow down. Car insurance costs will increase by 7% in 2024, almost double the median year-over-year hike, according to Insurify’s latest projections.
The national average cost of a full-coverage policy is $2,019 per year, representing 2.6% of the median household income. The national average for state-minimum liability insurance rose to $1,154 per year.
Car insurance rates increased 638% more than wages increased in 2023 on average.
Close to 62% of Americans reported their car insurance rates increased in 2023, with almost 22% reporting their rates increased more than once.
Lowering coverage limits and increasing deductibles are the most popular ways drivers cut costs. However, 45% reported they didn’t take any steps to reduce their premiums.