Car insurance rates are on the rise, hitting consumers hard, especially in metro areas where reliance on vehicles is high. Several factors are driving these increases, including catastrophic weather-related losses that could exceed $100 billion in 2024, a legacy of the COVID-19 pandemic that has inflated both new and used car prices, and the rising costs associated with high-tech vehicles. The complexity of modern cars means repairs are more expensive, with advanced features leading to higher replacement costs. Additionally, reckless driving and a significant number of uninsured drivers contribute to the financial strain on insurance companies, resulting in increased premiums for all. In 2024, drivers can expect an average premium increase of about 7%, although this is a decrease from previous years. However, there are ways to mitigate these costs, such as reviewing policies, shopping for better rates, and taking advantage of various discounts.
Read the full article here.