Insurify says the first six months of 2023 were incredibly hard on personal auto insurance prices. They rose an average of 17% across the U.S. Insurify says it will get worse before it gets better and predicts they’re going to rise at least another 4% before the end of the year.
The insurance price comparing website’s spokeswoman, Allie Feakins said the national average per year now stands at $1,668. She says inflation, high and still growing repair costs, unfriendly regulations and staggering losses faced by insurance companies is behind the stunning rate hikes.
“Vehicle repair and maintenance costs have outpaced inflation and show no signs of slowing, leading insurers to increase auto insurance prices to keep up with the cost of higher claim payouts,” Feakins said. “Given the lag between regulator approvals and actual rate increases, consumers can expect rates to increase over the next 12 to 18 months.”
This isn’t new news for consumers who’ve borne the brunt of the hikes. Prices have risen so drastically that 51% of policyholders say aren’t seeking full-coverage anymore.
Betsy Stella is Insurify’s vice president of carrier management and operations. She said full-coverage policies cost about 62% more than minimum liability so with price hikes as sky high as they’ve been, liability-only coverage rose by 86%.
“The frequency and severity of natural disasters have led to some geographical areas experiencing different types of weather events from what they’ve seen before,” Stella said. “More vehicles are being caught and destroyed in fires and floods, and ice is sticking around longer, increasing the likelihood of collisions. This has led to auto insurers paying a higher number of — and a higher price for — customer claims.”
Two of the states seeing the largest price increases in the full-coverage insurance market are the PIA Western Alliance states of New Mexico and Nevada who rank numbers one and two.
1. New Mexico — up 38%
2. Nevada — rose 36%
3. New Jersey — 34%
4. Michigan — 31%
5. Indiana — 28%
6. Maine — 28%
7. Pennsylvania — 26%
8. Florida — 25%
9. Texas — 25%
10. Nebraska — 23%
Source link: PropertyCasualty360.com — https://bit.ly/45caMrS