01/18/2024
Why are Auto Insurance Rates so expensive!?
The average rate for full auto coverage in the US rose 24% to $2,019 per year in 2023.
Some sources say premiums could increase another 12.6% in 2024.
Cheapest vehicles to insure... Honda CR-V LX, Jeep Wrangler JL Sport, and Subaru Crosstrek .
Why are rates so expensive...
Labor and parts to repair damaged vehicles are expensive. As of last summer, car repair costs were up almost 20% in just a year. As cars get more technologically advanced, repairs get more complex and expensive. And insurers have to pass that cost along in order to stop the financial bleeding just to stay in business.
Vehicles are historically expensive — the average price for a new vehicle in December 2023 was $48,759.
Thefts are becoming more common. Motor vehicle thefts were up about 34% during the first half of 2023 compared to the same time a year earlier.
Exacerbating the problem... When COVID hit hard in 2020 and all the carriers CUT rates they made the pain we are all feeling today worse as a percentage of increase from the lower rates in 2020.
***This is a big one that most people have no clue even exist.... Reinsurance that most all carriers have are shifting, especially given natural disaster risks. When insurers and re-insurers can’t accurately calculate a future risk,they often charge more to hopefully cover it.
Insure companies ARE doing more than just raising rates, they are cutting staff, and suspending coverage in some areas and for some consumers.
With insurance rates skyrocketing, there might be a slowdown in those that work part time for Uber or Lyft when their insurance bill costs more than they make in a month.
Insurance rates are a concern for all of us, I assure you, agents dislike the rate increases as much or more than anyone.
At Timberlake we are independent and have several options to offer. Give us a call.
Jasper 409-384-9916
Newton 409-379-8636
Buna 409-994-5623
Carthage 903-693-4999
