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Car insurance premiums rise 26% in 2024, report finds

The average American will spend around $2,543 for an annual premium in 2024, according to Bankrate.
Car insurance premiums rise 26% in 2024, report finds
Posted at 1:52 PM, Feb 12, 2024
and last updated 2024-02-12 16:22:27-05

Don’t be shocked if your car insurance goes up this year.

Car insurance rates jumped 26% on average across the country in 2024, according to a new report from Bankrate.

That comes out to around $2,543 for an annual premium, a more than $500 increase over last year.

The average driver spends around 3.4% of their income on a full-coverage car insurance policy, according to the report.

Why has car insurance gone up so much?

Part of it depends on personal factors like where you live, your age, and your driving record. But rising car-repair costs, inflation, and more disaster-related claims can also cause surges.

In 2023, there were 28 weather and climate disasters, breaking the record of 22 set in 2020, according to a NOAA report. These disasters had a total price tag of at least $92.9 billion.

SEE MORE: This city still has the highest car insurance rates in the country

Adding a teenage driver onto your insurance can also significantly impact the cost.

There are a number of ways you can save on insurance, however.

First, focus on your driving. Your driving record can play a huge role. Speeding tickets, accidents, and a lapse in insurance coverage can all impact your rates.

Your credit history and what vehicle you drive can also be a factor. The more a car costs to repair or replace, the more it will cost to insure.

You can also check with your insurance provider for other possible discounts and programs.

@scrippsnews How much do you pay for car #insurance? According to a new report, 2024 annual car insurance premiums will increase by $500 over last year. Here are some tips to save some 💰. #cartok ♬ original sound - Scripps News


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