Car Insurance Rates 2024: See How Much They Went Up

NEWPORT BEACH, Calif. - Jan. 8, 2024 - PRLog -- Last year, car insurance rates increased by 6%, and the average 2023 car insurance rate was $255.95 for full coverage. Many drivers were hopeful that 2024 would usher in a new season of lower car insurance premiums, but unfortunately, several factors, including carriers playing catch-up with the losses they've incurred over the past few years, will continue to contribute to the rise in car insurance rates yet again

It's predicted that car insurance rates will increase 18.9% in the new year, on average.[1] That means for full coverage, the average 2024 car insurance rate is $304.32 Largely, the hikes are caused by a 45% increase in replacement costs from 2020 to 2023 as well as higher incidents of losses. There has been a steady increase in carriers replacing totalled and stolen cars so these extra costs are spread amongst insured individuals.

The fact of the matter is that insurance companies have been paying out $1.10 for every dollar received in car insurance premiums for quite a while.[2] When carriers dip into the negative, they have little choice but to raise rates to be able to continue paying claims.

Here is everything you need to know about what's driving up car insurance prices at renewal and how you can drive down your cost.

To find out what insurance costs in your state and more about increases in premiums, visit https://smartfinancial.com/state-of-car-insurance