Latest Update on Auto Insurance Rate Increases – Sept 2024
We wish we were writing to say there was an end in sight to the auto insurance rate increases, but unfortunately, that is not the case. It looks like we will continue to see auto rates rise through 2025. According to this Big I article, “high claims severity that plagued the personal auto insurance market in 2023 shows no signs of abating… Bodily injury severity has risen 20% from the end of 2020 to the end of 2023, according to the report, while severity for all material damage coverages has increased 47%.”
Several factors continue to impact claim costs, which ultimately impact your premiums:
- Continuous rise in claims severity
- Increase in uninsured motorist and attorney-represented claims
- Increase in total loss claims
- Increase in repair times
- Rising costs of medical bills, towing services, and storage costs
- Changes in legislation that increases insurers’ financial responsibility (i.e. carriers must pay more by law so those costs are factored into needed rates)
A new report published by Insurify shows the average annual cost of full coverage in the U.S. surged to $2,329 in the first half of 2024. South Carolina was even more, coming in at $3,336 for the average annual cost of full coverage. Per Insurify, South Carolina ranks number 2 on the 10 most expensive states for car insurance list. Not sure this is a list we want to top!
All this being said, Livingston Insurance Agency continues to stay dedicated to providing market updates to you and working with you through this hard insurance market. If you have questions regarding auto insurance rate increases, please do not hesitate to ask! We have had an influx of requote requests so please be patient with us while we work to find the best solution for you and your insurance.