The trickle down theory can touch anything and everything.
In this blog entry, we're looking at the average monthly price of car insurance. Some individuals can remember being able to drive our U.S. roads and highways without including a hefty monetary sum for car insurance. Now, the bill is encroaching on "OMG, is this right?"
Break out with your A.I., and conduct some research, side by side compare companies, and find bargains.
U.S. inflation kicked the auto industry in the rump. Hard.
Reuters.com quote:
"Consumer prices in December overall rose 3.4% from a year earlier, the Labor Department said on Thursday in the release of the monthly Consumer Price Index, more than the 3.2% economists polled by Reuters had expected and up from 3.1% in November."
This rise in cost has set a new insurance precedent over the last half a century. The trend has no predicted end, either.
The BANKRATE True Cost of Auto Insurance Report determined the annual cost for full coverage car insurance in 2024 to be $2,543, compared to $2,014 in 2023 and $1,771 in 2022. Paying your annual premium can save you money as opposed to paying monthly premiums. An example of the increase, someone earning a median household income of $74,580 will pay 3.41% of their entire income on auto insurance.
The Three Largest Auto insurance companies 2024:
State farm: $46.7 billion
Progressive: $38.9 billion
Geico: $38.1 billion
Recall, in the old days, when ROADSIDE ASSISTANCE was complementary. Some companies happily gifted out RENTAL CAR costs, too.
In the red, white, and blue, each state can vary their rates. Obviously shop around. All in all, though. Expect an increase in policy rates that won't fade.
Long story short, auto insurance companies have been hit in the pocket. As their costs have increased, so have the consumers costs increased, too.
Car insurance companies were getting mashed in the last decade. Collision costs boomed, liability costs zoomed, employees pay popped, medications prescription costs sizzled, body shops off the hizzle, pain compensation costs in court rocketed, and thus we can understand the overall policy premium increases looming in the remainder of 2024.
Side by side rate comparison sites are great. The detailed questions in rate comparison questions will take time, though. Have you had any recent tickets? Are you currently insured? How many drivers are there? And, etc.
"Copy, and paste. Compare. Rate. Discover. Learn. You will. Yes, use the low policy rate force. Let premiums guide you, you must." A.I. Yoda
In reality, 2024, there is simply auto insurance rate increase.
Government agency issues are taking on unfair and deceptive price practices. State by state issues can make policy prices fluctuate. Insurance company representatives state that, insurers raise costs in response to your risk as a driver, such as where you live and whether you have a teenager on the policy. They also raise rates based on risks beyond your control. Inflation for example.
"Between 2020 and 2024, inflation increased the cost of vehicle parts and labor, car crash fatalities increased by over 10% and we saw a significant rise in extreme weather and vehicle theft claims. All these factors contribute to the high rates we’re seeing today."
Life events increase your rates. Adding teen drivers, DUI convictions,
credit score changes, at fault accidents, involved accidents, speeding tickets, and lapse in auto insurance coverages can boost costs significantly.
Environmental influence costs-
Cities with high costs:
Detroit, Michigan
Hutchins, Texas
Venice, California
New York City, New York
Santa Rosa Beach, Florida
Insurance pointers:
Shop around.
Raise your deductible.
Bundle policies.
Boost your credit score.
Enroll in defensive driving.
Pay annually versus monthly.
Inflation in the United States is decreasing, but this hasn't turned the tides on auto insurance rates. We can, independently, drive better. Maybe, future rates will follow suit.
Good luck on the roads, stay cool, drive safely in 2024.
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