Auto Insurance Outlook For 2024
Overwhelmingly, they agreed that the focus for 2024 will be auto insurance rates—which are up 18.9% year-over-year according to the Bureau of Labor Statistics—and when they may start to plateau or come down. This means you’ll pay $1.09 for every $1 in fees. 》
Accident expenses and the reaction of insurance companies that pay more for accident expenses than they wrote will cause insurance costs to increase in 2024. According to a 2023 APCIA report, the cost of property damage from car accidents will increase by nearly 50% from 2018 to 2022. The average personal injury compensation rate increased by 40% during the same period.
APCIA states that one of the main factors affecting the increase in insurance costs is the increase in medical costs. The cost of medical care and hospitals has exceeded the total cost of inflation over the past five years. That’s why insurance companies pay more for personal injury claims. average time of 26 days.
Larger Litigation Payouts
has gone up by nearly 320% between 2010 and 2022.
analytics provider specializing in the insurance industry.
More Uninsured Drivers
The number of U.S. households with at least one vehicle who say they don’t have car insurance increased slightly during the first half of 2023, up to 5.7% from 5.3% in the second half of 2022, according to J.D. Power.
Twelve states have already seen an increase of 30% or more in uninsured drivers. J.D.
South Dakota up 106%.
New Hampshire up 84%.
West Virginia up 50%.
Oregon up 47%
Indiana up 36%.
As the number of uninsured drivers increases, it has become more important to obtain uninsured motorist insurance and the cost of insurance for consumers has increased.
States Want to Control Prices
Some states are passing new laws to lower car insurance rates and protect consumers.
Georgia Governor Brian Kemp signed HB 221 into law extending auto insurance coverage by at least 60 days. This allows the state Insurance Commissioner’s Office to review auto insurance claims before they are processed. Before the law went into effect, auto insurance companies in Georgia could change rates immediately by applying to the governor’s office.
It is too early to tell how this law will affect auto insurance in the state.
In Colorado, under SB 21-169 (enacted in 2021), the law continues to hold insurance companies accountable for testing their Algorithms to determine the price and other information used to show that they are not using unnecessary information. discrimination. applications.
It is not yet known how Colorado auto insurance rates will be affected. The insurance commissioner also works with insurance companies, agencies and other parties to ensure the state can develop policies that allow insurers to test and prove they are using non-discriminatory information.