Car insurance is becoming more expensive. The average annual premium for full coverage auto insurance in the U.S. rose to $2,543 in 2024 — up 26% from the previous year, according to Bankrate.
Factors such as longer repair times and higher rental car costs are driving up rates, according to a report from the American Property Casualty Insurance Association.
Car repairs are also becoming more expensive.
“In the last 12 months or so, we've been in an environment where basically all insurers have significantly increased premiums,” said Stephen Crewdson, senior director of insurance business intelligence at J.D. Power. “This has created an environment where the consumer, the insured, goes out to buy auto insurance and finds that they can't find an insurance company that has lower premiums for them.”
About 215 million Americans carry auto insurance and the market is worth $353 billion, according to IBISWorld.
So, what are the other factors behind the spike in auto insurance rates and what is the impact of rising insurance premiums on consumers and large publicly traded companies like Allstate, Progressive, Berkshire Hathaway Gecko?
Watch the video to learn more.
