There’s some bad news ahead for many California drivers. There is a newly released report from Insurify forecasting auto insurance rates will continue to rise in 2024. In fact, residents of California should expect spike as high as 54% in 2025. The typical U.S. insurance policy will jump 22% this year to an average annual premium of $2,469 by year-end, the report found. Many drivers saw their policies jump 24% in 2023.
Auto insurance remains a pain point for consumers even after experiencing more than two years of elevated inflation. Even as overall inflation rates are cooling, drivers are continuing to see their policy rates dramatically increase. “Increasingly severe and frequent weather events are driving up auto insurance premiums,” Insurify said in its report. “Hail-related auto claims represented 11.8% of all comprehensive claims in 2023, up from 9% in 2020, according to CCC Intelligent Solutions.”
CBS News reported there are additional reasons, aside from climate events, that are driving up auto rates even when your driving record hasn’t changed. The cost paid by insurance providers to repair vehicles after an accident, such as for labor and parts, have increased more than 40%, and insurers are passing those increases onto drivers.
The average annual cost of full coverage car insurance in California is projected to increase to $2,681 by the end of the year. This represents a total projected increase of 54% in 2024 and this led some drivers to avoid filing claims by prompting some drivers to change their behavior. Almost 4 in 10 insured drivers involved in an auto accident or incident have skipped filing a claim with their insurance company. Almost one-quarter of drivers who filed a claim said they later regretted it.
Many drivers who avoided filing a claim did so because the damage was minimal or the deductible was higher than the cost to fix their vehicle. Another 42% said they skipped an insurance claim because they didn’t want their rates to jump. “Once you’ve been involved in an accident of any type, insurance companies see you as riskier to insure,” LendingTree auto insurance expert and licensed insurance agent Rob Bhatt said in a statement. “Your rates will eventually come down if you avoid claims for three to five years, depending on your insurance company. Remember, the reason you carry car insurance is to prevent an accident from leaving you in financial hardship and pay for any potential short-or-long-term injuries.
We represent people who are injured because of the careless and reckless acts of others. At the end of the day your case can only be settled one time and you need to know all of the facts beforehand. The reason that insurance companies have paid our clients in excess of $130,000,000.00 is that we get the facts and are not intimidated at the prospect of going to trial when insurance companies fail to offer full compensation. We help with serious injuries that require serious representation. We are the Law Offices of Guenard & Bozarth, LLP. Our attorneys have more than 60 years of experience specializing in only representing injured people. Call GB Legal 24/7/365 at 888-809-1075 or visit www.gblegal.com
