Will High Car Insurance Costs Ever End? See What’s Next in 2024 – Pas Trusted News

The cost of car ownership has been one of the most painful parts of high inflation in the past few years, with rising car insurance costs partly to blame. Car insurance costs rose 20% in 2023, and are up 43% in the past three years through December 2023. Car repair costs increased 10.3% in 2023, helping to drive up the price of insurance.

Higher car insurance premiums are causing many Americans to cut back on their budgets for “fun money” and even for food. A new survey from car app Jerry (getjerry.com) found that 58% of American car drivers are cutting their spending on restaurants, clothing, and groceries to make up for the rising cost of car ownership.

Is there any hope for car insurance customers? Will car insurance premiums get more affordable in 2024, or are high costs here to stay?

Let’s look at a few findings from the Jerry 2024 State of the American Driver Report, and see how car insurance customers can get the best deal on your next policy.

1. Car insurance rate hikes are not slowing down

Josh Damico, VP of Insurance Operations at Jerry, predicts that car insurance premiums still have room to climb in 2024. “The upward trend will continue this year but it’s too early to tell exactly how high it could go,” Damico said.

If your insurance keeps getting more expensive in 2024, one strategy could be to raise your deductible or cancel non-essential coverages. Other drivers are making the same move. The Jerry 2024 State of the American Driver Report found that many American car owners have been forced to compromise on insurance coverage to try to lower their premiums. In fact, 22% of American drivers bought less car insurance coverage than they wanted in 2023, including 39% of Generation Z drivers.

Read more: check out our picks for the best car insurance companies

2. Beware of your next auto insurance policy renewal

If your car insurance premiums went up in 2023, take a deep breath. You might have to pay even more when your auto policy renews in 2024 and you receive notice from your insurance company about your new (higher) car insurance premium.

In case you didn’t notice last year’s rate hike, or it was a manageable amount that fits easily into your budget, you might have sticker shock this year. Jerry’s Damico believes that May-July of 2024 will be a breaking point for frustrated auto insurance customers who suddenly decide to shop for price quotes.

“By mid-2024, insurers will be ready to grow and many car owners will see large renewal increases hit, due to the rising cost of doing business for insurers,” Damico said. “This dynamic is expected to cause record levels of shopping around and switching insurers.”

One surprising finding from the Jerry survey was that, despite painful price hikes for auto insurance, most Americans are not trying to find a better deal. Only 38% of drivers attempted to shop around for auto insurance price quotes in 2023 — fewer than those who cut back on restaurants and groceries.

Keep in mind that just because your auto insurance company is raising your premiums, that doesn’t mean you are helpless. You don’t have to just sit back and accept that higher cost of car insurance. You have choices. Shopping for auto insurance price quotes could open up some surprisingly cheap car insurance deals. And don’t be too quick to raise your deductible or cut your coverage — that can set you up for financial disaster, just like Mayhem from Allstate tried to warn us about.

Bottom line

Car insurance has gotten shockingly expensive in the past few years, and it’s becoming a major source of pain for people’s personal finances. But you don’t have to stop buying groceries or give up all your fun in life. Mid-2024 could be a perfect time for customers to shop around, with car insurance companies eager to compete for your business.

Get auto insurance price quotes and try to find a better deal. Talk to insurance companies about the full picture of your insurance needs, such as bundling home and auto coverage. You might also want to consider a “usage-based” insurance policy that rewards safe drivers, like State Farm Drive Safe & SaveTM. But whatever you do, don’t just take the first offer you get from your current insurance provider. Switching car insurance companies might be your best option to get cheaper car insurance in 2024.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

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