More consumers are looking at new insurance because they can’t afford their current premiums. (iStock)
A new survey shows that consumers will begin to reassess their insurance premiums in the first quarter of 2024 in search of more affordable options. report From J.D. Power and TransUnion.
The increase in insurance purchases came after two consecutive quarters in which consumers appeared to accept the lack of discounts. In January, purchase rates rose from 11.7% to 12.1%, and in February they rose further to 12.5%. Purchase rates jumped 13.5% in March, with Southern consumers searching for new premiums at a faster pace than any other region in the U.S. The switching rate rose to 3.9% from 3.6% at the end of 2023.
Consumers say the cost of premiums is the reason they buy insurance: About 22% say they bought insurance because premiums were too high, up from 16.9% last quarter, and 14.6% say they shopped for a new insurance company because premiums had recently increased, up from 7.9% last quarter.
“Purchasing intent for both property and auto insurance declined at the end of 2023, primarily due to expected seasonality,” the report said. “As the industry progresses into 2024, market trends will likely change, but purchasing intent can be expected to remain strong through 2024.”
If you’re looking to save money on your car, consider switching car insurance companies to lower your monthly rates. Visit Credible to compare rates and find the right policy for you.
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Auto insurance rates continue to rise
A recent survey found that the average amount drivers will pay for car insurance in 2023 will be $1,841, up 5% from the previous year. report From Zebra. This is after a projected 15% increase from 2022 to 2023. Unfortunately, the situation is expected to remain similar in 2024.
Where you live can make a big difference in how much you pay for insurance: In states hard hit by weather-related disasters, for example, insurers are more likely to withdraw policies or write new ones, leaving buyers with fewer options for insurance.
The make and model of your car also plays a big role in your car insurance premiums, with drivers of Kia and Hyundai cars having a hard time getting insurance for these vehicles as certain models are more susceptible to theft.
Topping the list of states with the highest annual premiums are Florida and Louisiana, where drivers pay an average of more than $2,700 per year in insurance premiums, 47% higher than the national average. Drivers in Vermont and Idaho have the lowest annual premiums, with annual premiums 35% lower than the national average. Drivers in 19 states currently pay an average of more than $2,000 per year for car insurance.
Looking for new car insurance? The Credible marketplace lets you compare multiple providers and find your personalized rate in minutes, without impacting your credit score.
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How to Lower Your Car Insurance Premiums
With premiums set to rise this year, drivers should consider switching their car insurance coverage before renewing their existing policy to get a better rate.
Here are some tips if you’re considering making the switch.
Know what to look for in insurance
Have a plan and understand what you want from your insurance. Knowing what you want to improve before you switch will increase your chances of getting the best rate.
Get multiple quotes
Comparing the same auto coverage strategies and limits with multiple insurance companies can help you get the best possible deal. Obtain at least three different quotes.
Contact your insurance company
Let your current insurance company know you’re switching – they may be able to give you a cheaper quote. If you prepay and cancel midway, ask about cancellation fees and refunds. Try not to cancel your current policy before purchasing your new policy, or you risk losing coverage.
If you’re looking for new auto insurance, you can use the Credible marketplace to compare multiple providers and find a customized rate in minutes, without impacting your credit score.
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