Here are some key trends and statistics in the auto insurance industry in 2024 ¹ ² ³ ⁴:
- Auto insurance rates are expected to continue rising due to inflation, medical and repair costs, litigation settlements and the number of uninsured drivers.
- The average annual cost of auto insurance is expected to reach $1,984 in 2024, with Michigan having the highest rates and Ohio the lowest.
- Dangerous driving behaviors, such as drunk driving and speeding, contribute to higher premiums.
- Electric vehicle insurance is becoming more affordable but remains 23% higher than traditional car insurance.
- Usage-based insurance is becoming more popular, with the market projected to grow to $174.33 billion by 2030.
- Some states are introducing legislation to control rising insurance costs, such as requiring a review period for rate increases or ensuring fair rate-setting algorithms.
- To reduce costs, drivers can consider safe driving programs, increase their deductible, reevaluate their coverage, compare rates regularly, take a defensive driving course, choose a car that’s cheaper to insure and explore pay-per-mile insurance options.
- Insurance companies offer discounts for members of certain groups or employees in specific professions, so drivers should ask about potential discounts.
- Paying premiums upfront and keeping a good credit score can also lead to lower insurance costs.
- Drivers should stay informed about market trends and adapt to changes to navigate the auto insurance market successfully.
0 Comments