Data from the first half of the year shows a 15% increase in full-coverage premiums, according to a report released by insurance comparison website Insurify, whose data science team projects a total 22% increase in 2024.
The report shows that the latest rate increases are “largely a continuation of hikes in 2023,” which saw a similar 24% spike “in response to insurers’ record underwriting losses in the year prior. Underwriting losses decreased to $17 billion in 2023 — a financial hit that was still substantial enough to drive significant rate hikes in the first half of 2024.”
“Insurer losses result from a combination of inflationary pressures — like the rising cost of vehicle repairs and the skyrocketing price of new cars — and unprecedented climate catastrophes that drive weather-related claims in states that haven’t historically seen as much of this type of damage,” the report revealed.
