Auto Rates Soar in 2024

Auto Rates Soar in 2024

| March 03, 2024

As we predicted in December 2022, auto rates are now soaring, and will continue well into 2024 and beyond.  The Department of Insurance, starting at the beginning of the COVID 19 pandemic, did not allow rate increases for three years.  While insurance carriers continued to charge 2020 prices, the cost of repairs and vehicles skyrocketed.  Inflation and record numbers of claims led to the average company paying out $1.18 in claims for every $1.00 paid in premium.  Flash forward, and carriers are making up for lost time by asking for bigger rate increases to make up three years of lost ground.  Click here for more details about the factors leading up to these changes, as predicted in our December 2022 arcticle: Auto Rates Will Rise Sharply

While you might be tempted to jump ship with your current insurance carrier to save a few dollars, please understand that every company will be increasing their rates, just at different times.  If you move to another company, they will likely raise their rates by your next renewal as well, and you will continue to chase pricing again and again.  If you have a bundle with homeowners, and move the auto to another carrier, you will also lose a sizeable bundle discount  on both policies. 

The most important consideration is not to lose the auto policy you have now, because the auto market is very restrictive. Do NOT let your policy expire due to non payment, or it may be difficult to find another company that will write you a new policy.  There may also be waiting periods of up to 20 days to get new coverage.  We recommend enrolling in autopay with a checking account, or ACH, and NOT a credit or debit card, that can expire or be canceled due to suspected fraud.