When it comes to car insurance, drivers in 2024 will face many more of the same issues they faced last year. (iStock)
Recent research shows that drivers expect much of the same for car insurance this year, as premiums continue to rise and shopping options remain limited as insurance companies exit certain markets. It is said that there is. report From zebra.
Drivers paid an average of $1,841 for car insurance in 2023, an increase of 5% from the previous year. This is after he had a 15% rise from 2022 to 2023. Unfortunately, the report says more of the same is likely to happen in 2024.
The same factors that drove the increases over the past two years are driving costs up this year. Inflation is impacting the cost of car repairs, with drivers filing higher claims. Extreme weather conditions continue to be a contributing factor to increased costs and increased vehicle theft. With no relief in sight, drivers are expected to pay even more in insurance premiums.
“We’ve had a record number of catastrophic weather events over the past few years, so it’s fair to say that insurance rates are high,” Zebra insurance agent Hunter Black said. “Insurance companies also paid out benefits during COVID-19, and once the pandemic ended, more cars on the road led to record auto claims, all of which led to losses for insurance companies. The rate increase will help recover the loss, as it has had a negative impact on rates.”
If you want to save money on your car, consider changing your car insurance company to get a lower monthly premium. Visit Credible to shop and find your own premium.
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These states are expected to see the largest increases in 2024
The amount you pay for insurance will vary greatly depending on where you live. For example, in states that are more affected by climate-related disasters, insurers are terminating and rewriting policies at higher rates, leaving buyers with fewer options when purchasing insurance.
The make and model of your car also has a big impact on the cost of auto insurance. Kia and Hyundai drivers have difficulty insuring these vehicles due to the high incidence of theft on certain models.
Florida and Louisiana top the list of states with the highest annual premiums. Drivers here pay an average of more than $2,700 a year in insurance premiums. This is 47% higher than the national average. Drivers in Vermont and Idaho pay the lowest, with annual premiums recorded to be 35% lower than the national average. Drivers in 19 states currently pay an average of more than $2,000 a year in car insurance premiums.
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How to save on insurance premiums
Americans won’t receive premium reductions in 2024, but drivers can save money by looking for new opportunities to save with their current insurance company or by switching. Here are some other options to consider to keep your car insurance affordable:
- Compare quotes from at least four to five companies before choosing a policy, and reevaluate your policy every six months to make sure it meets your needs.
- Consider insurance discounts and savings. Insurance policies that offer discounts for low-risk behaviors, such as AAA membership or taking advanced driving safety courses, can help drivers lower their auto insurance premiums. Alternatively, telematics programs can help drivers save money based on their driving habits.
- Pay only for the coverage you want and need. Understanding what your insurance covers is the first step to determining whether it covers your needs. According to Insurify, every state in the U.S. except New Hampshire requires liability coverage. Compensates for injuries and property damage sustained by the other party when you cause an accident.
If you’re struggling with rising prices and want to save money, consider finding a new car insurance company to lower your monthly premiums. Visit Credible to compare multiple auto insurance companies at once and choose the one that offers the best rates for you.
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