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Above-average auto rate increases mean decreased coverage for many drivers

Above-average auto rate increases mean decreased coverage for many drivers

Car insurance rates are up 17% and are expected to hike another 4% during the remaining months of 2023, according to the Mid-Year Auto Insurance Trends Report from Insurify.

The national average for an auto insurance premium is now $1,668 – compared with $1,428 only a year ago.

The reason for the increase? Inflation is playing a major role, as higher prices for new cars, body and mechanical parts, and labor have driven repair and replacement costs up. Other factors include riskier driving habits (which have led to more collisions), more severe weather events (which have led to increased high-cost claims), and more injuries and fatalities (which have led to increased litigation over claims).

In response to the higher rates, many drivers are opting for less coverage to save money and only purchasing liability insurance, leaving them at risk if their vehicles are damaged.

While your advisors at Schauer Group can’t control the factors driving auto rates up, they can help you negotiate the best price for the coverage you need. If you’d like to discuss further, please reach out to your Schauer Group representative or email us at insure@schauergroup.com.

Read the full report from Insurify here.   

Brought to you by the insurance professionals at Schauer Group.
This article is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice. All rights reserved.