Rising Auto Insurance Rates in the U.S.

Auto insurance rates in the U.S. have surged, with the average annual premium for full coverage reaching $2,543 in 2024, marking a 26% increase from the previous year. Factors such as longer repair times, higher rental car costs, and increasing expense of car repairs are contributing to this rise. Insurers have aggressively hiked premiums, creating a challenging environment for consumers seeking lower rates. With around 215 million Americans carrying auto insurance, the market is valued at approximately $353 billion, as reported by IBISWorld. The impact of these rising premiums on consumers and major publicly traded companies such as Allstate, Progressive, and Berkshire Hathaway’s Geico needs to be addressed to understand the broader implications of the escalating auto insurance costs.