Automobile insurance coverage is getting dearer. The typical annual premium for full protection auto insurance coverage within the U.S. rose to $2,543 in 2024 — up 26% from the earlier yr, in line with Bankrate.

Components similar to longer restore instances and dearer rental automobile prices are leading to rising costs, in line with a report by the American Property Casualty Insurance coverage Affiliation.

Additionally, vehicles have gotten costlier to repair.

“Up to now about 12 months we’re in an atmosphere now the place basically all insurers have aggressively elevated premiums,” stated Stephen Crewdson, senior director of insurance coverage enterprise intelligence at J.D. Energy. “That has led to an atmosphere the place the buyer, the insured, is out looking for auto insurance coverage and discovering that they can’t discover an insurer that has a decrease premium for them.”

Round 215 million People carry auto insurance coverage and the market is valued at roughly $353 billion, in line with IBISWorld.

So, what different components are behind the spike in auto insurance coverage charges and what impression are rising premiums having on customers and huge publicly traded firms similar to Allstate, Progressive and Berkshire Hathaway’s Geico?

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