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Millions of vehicle owners have been shocked when opening their most recent auto insurance bills. Rates are up across the board, hitting $2,543 in 2024, which represents a 26 percent increase from 2023. CNBC and Bankrate reported on the rate increase, noting that some states and drivers have it much worse than others.
The reports found that Americans are spending 3.41 percent of their incomes on car insurance, reaching an average of $212 per month for full coverage insurance. Drivers in Louisiana spent the most on coverage as a percentage of their income, while people in Massachusetts paid the lowest percentage.
What’s causing the jump in insurance rates nationwide? A few factors have aligned, including longer repair times, more expensive parts, higher-priced rental cars, and more. Cars in general are also becoming more costly to fix. There have been plenty of stories of high-priced Tesla and Rivian repairs, but even gas vehicles can be ridiculous because of the tech and materials employed in production.
The rise in car thefts, including of Kias and Hyundais, has also played a role in the price increases. Urban areas, where it was already more expensive to insure a car, have seen jumps in crime, and insurers charge extra when they view a situation as risky.
Of course, all of these factors ignore the most important things insurers use to determine car insurance rates: You. Your age, driving record, credit, and many other factors play a hugely significant role in determining what you pay for car insurance. If you drive like a maniac and have accumulated several speeding tickets, higher insurance rates should come as no surprise.
[Image: Photo Spirit via Shutterstock]
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