Car Insurance Rates Increase Post-COVID
Car insurance rates have continued to rise dramatically after the coronavirus pandemic, despite predictions from industry experts that the increase would have slowed down by 2024. Various factors such as legislative changes, supply chain disruptions, and a technician shortage have contributed to the significant increase in premiums.
Key Points
- 15% increase in full-coverage premiums in the first half of 2024 compared to 2023
- Predicted 22% total increase by the end of 2024
- Nationwide drivers paying 48% more than in 2021
- States like California, Missouri, and Minnesota could see premiums increase by over 50% due to natural disasters
- Maryland has the highest average full coverage payment at $3,400 annually
- Legislative changes and enhanced uninsured motorist coverage contributing to higher rates
- Supply chain disruptions and technician shortage leading to increased repair costs
Pros
- Enhanced uninsured motorist coverage benefits policyholders
- Increased financial responsibility for insurers
Cons
- Higher premiums for drivers
- Supply chain disruptions and technician shortage leading to increased repair costs