Zoe Mckey, Staff Writer
Auto insurance rates are expected to continue rising in 2024, with some states facing significant increases. A report from Insurify forecasts that the average U.S. policy will rise by 22% to $2,469 annually, following a 24% increase in 2023. California, Minnesota, and Missouri are projected to see the most dramatic hikes, with rates potentially spiking by over 50%. The report attributes the rising costs to factors like frequent climate events, which have increased damage claims, and rising costs for vehicle repairs and legal settlements.
The rising premiums are leading many drivers to reconsider filing insurance claims. A LendingTree survey found that about 40% of drivers involved in accidents chose not to file claims, often due to concerns over rate increases. While avoiding claims might temporarily save money, experts caution that filing a claim is usually worth it if repair costs exceed a few thousand dollars, as the purpose of insurance is to protect against significant financial losses.
