Car owners are paying hundreds of dollars more for auto insurance amid an uptick in “unprecedented climate catastrophes,” according to a recent report.
New data shows auto insurance rates surged 15 percent in the first half of 2024, with the average annual cost of full coverage exceeding $2,300 in June. Those figures are expected to continue rising, reaching an estimated $2,469 by the end of this year.
That’s according to Insurify, an insurance cost comparison website. In a report published earlier this month, analysts said car owners in disaster-prone states including Florida, Louisiana and Nevada are among the hardest hit. People in those states already pay well over $3,000 for auto insurance — and are projected to see rates soar by 18 percent or more this year.
Driving the increases are a range of factors that are also exacerbating the cost of homeowners insurance, the report says. Among them: inflation, regulation and extreme weather such as hurricanes, wildfires and hail storms that are capable of severely damaging or totaling vehicles.
