Auto insurance rate hikes aren’t slowing down

Data from the first half of the year shows a 15% increase in comprehensive coverage premiums, according to a report published by insurance comparison site Insurify, whose data science team projects a total increase of 22% in 2024.

The report says the latest rate hikes are “largely a continuation of increases from 2023,” which saw a similar increase of 24 percent “in response to record underwriting losses by insurers the previous year. Underwriting losses fell to $17 billion in 2023 – a financial impact that was still substantial enough to drive significant rate increases in the first half of 2024.”

“Insurer losses result from a combination of inflationary pressures — such as the rising cost of vehicle repairs and the skyrocketing price of new cars — and unprecedented climate catastrophes generating weather-related damage in states that have not historically seen as much this type of damage,” the report revealed.