During the first six months of this year, personal auto insurance prices have increased an average of 17% in the U.S., according to a mid-year report from Insurify, Inc., which projects another 4% increase before 2023's close.
The national average annual cost for auto insurance now stands at $1,668, Insurify reported. Inflation, growing repair costs, legislative changes and insurers struggling through record-breaking losses are driving the current price hikes.
"Vehicle repair and maintenance costs have outpaced inflation and show no signs of slowing, leading insurers to increase auto insurance prices to keep up with the cost of higher claim payouts," Allie Feakins, Insurify's senior vice president of insurance, said in the report. "Given the lag between regulator approvals and actual rate increases, consumers can expect rates to increase over the next 12 to 18 months."
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
