[MJP] — Think yourself fortunate if you’re happy with your auto insurer at the moment.
According to a study conducted by Insurify, an online insurance marketplace, premiums are expected to skyrocket in 2024 due to a multitude of variables. These include climate-driven natural disasters, inflation, and the exorbitant prices of new cars.
The survey revealed that complete coverage in Ohio will increase by 33% to $1,691 per year on average this year. This coverage includes comprehensive, collision, and liability.
Following a 15% increase in premiums across the country in the first half of the year, Insurify predicts a 22% increase in coverage in 2024, with certain states bearing the brunt of the increase.
Image – Insurance Business America
Three states are expected to have rises of more than 50%, according to the study: California (54%), Missouri (55%), and Minnesota (61%). This is partly because of the enormous payouts caused by catastrophic storms and wildfires.
Insurers may be forced to increase premiums or even cancel policies in the aftermath of exceptionally destructive weather disasters, particularly in regions that typically do not experience such occurrences. This is particularly true for companies that offer combined home and auto insurance policies.
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Insurance companies have been inundated with claims due to severe hailstorms in Minnesota and Missouri this year, and every year, deadly wildfires rage in California, forcing insurance firms like State Farm to cancel thousands of homeowner contracts.
Driving in seven US states is more expensive than anywhere else, according to a new analysis.
Along with the continuous increase in auto insurance premiums, the price of cars themselves skyrocketed throughout the epidemic due to supply chain problems that limited the availability of new cars and the computer chips used in them.
In July, the average price of a new automobile was $48,401, as reported by Kelley Blue Book. This represents a significant increase from the around $36,000 average in 2019 before the epidemic. Insurance firms are finding it more costly to cover accidents due to higher pricing and more expensive parts.
According to AAA Northeast’s VP of insurance operations, Greg Smolan, “The severity is the thing that has influenced rates more over the last two years than anything,” as said to the Associated Press. “All those sensors and cameras weren’t there when a fender bender happened in the past.”
Regardless of the factors at play (such as hail, hurricanes, legislative changes, or car theft), the following five states have the quickest-growing auto insurance prices, according to Insurify:
The average yearly cost of full coverage in the state as of June 2023Average Yearly Premium for Comprehensive Insurance (June 2024)Comparative Growth (June 2023–2024)Forecasted Growth for the Year 2024.
- American Samoacosting $1,492$55% of $2,315 or 61% off
- The state of Missouri1,582 $$$ 2,386 $$$ 51% $65
- The following percentages apply to North Carolina: $46% $39%
- Illinois: $1,356; $1,981; 40%; 31%
- Los Angeles$54% of $1,666 becomes $2,417.
A company called Insurify
Car insurance premiums that are too high are nothing new in some areas. Maryland ($3,748), South Carolina ($3,687), New York ($3,484), Nevada ($3,531), and Florida ($3,444) were determined to have the highest projected average premiums at the end of 2024 based on an analysis of Insurify’s “more than 97 million rates in its proprietary database” for drivers aged 20 to 70 with clean records.
