Why the Cost of Auto Insurance is Surging

Do you feel like you’re paying a lot more for your auto insurance?

You are, and it’s not just because of inflation.

According to the Bureau of Labor Statistics, car insurance premiums increased by 22% between March 2023 and March 2024, the most significant YoY increase for the category since 1976. The national average cost of car insurance is $193/month for full coverage and $54/month for minimum coverage, per Bankrate.

Several factors are driving the surge in auto insurance prices:

• Average car prices for new vehicles are $49,000 as of Feb. 2024, which is 29% higher than the average pre-pandemic price of $38,000 in Feb. 2020, per Cars.com

• The increased sophistication and technology in cars for driver assistance technology (e.g., emergency braking, automated parking, blind-spot monitoring, etc.) require more expensive parts, take longer to fix, and are subject to higher labor costs

• From 2019-2023, claim severity for bodily injury and property damage increased by 35%, and collision claim severity jumped by 40%, per LexisNexis Risk Solutions

There seems to be no end in sight.

Insurance companies filed for rate increases with state regulators through the end of 2023 and the start of 2024. They are also threatening to leave states if they can’t charge higher premiums, employing the same tactics of home insurance providers. California drivers are already reporting increased difficulty in finding coverage.

Insurance – only there for you when you don’t need it.

Our Picks

Here are today’s recs to help you live a smarter life…

1. Lose the cords.

A charging station for Apple devices. 40% off.

2. Grampa’s Weeder.

Easy and simple weeding tool that saves your back.

3. Hear music in a new way.

AirPods Max reimagine over-ear headphones.

In Case You Missed It

• Accidental Theft — One in five shoppers have accidentally stolen items via self-checkout.

• New Superyacht Sales Plunge as Russians Drop Out of the Market — Sales of new superyachts fell 17% last year.

• Restaurants Start Drone Deliveries — Panera Bread and Sweetgreen partner with Zipline to start delivering meals via drone.

• Automakers Are Helping Insurance Companies Spy on You — How your automaker might secretly share your driving habits with insurance companies, leading to higher rates, and what you can do about it.

• Gen Z and Millennials Resort to Buy Now, Pay Later for Daily Essentials — Gen Z and Millennials are increasing their usage of BNPL solutions for daily essentials like garbage bags and lighter fluids.

Take me to all the daily stories I missed.

Was this email forwarded to you? Sign up for free here.

* denotes a sponsorship