Sky-High Insurance Rates have Increased 51% In Three Years
According to a Washington Post report and the US Bureau of Labor Statistics, car insurance rates are sky-high, and premiums are at their highest ever.
After plateauing in the run-up to the pandemic, and a sharp decrease in 2020, rates are skyrocketing — the increase totals some 51% since November 2021, per the Post’s report.
The report points to higher repair costs as part of the reason for the increase, in part attributing this to the high level of technology found in today’s cars.
While that increased level of tech does, in some cases, help to increase driver safety, when things break, the bill will also be higher. In addition to rising repair costs and the rise in labor associated with them, the WaPo report cites more frequent and more severe accidents as a factor in severely high insurance rates. Meanwhile, insurance companies continue to rake in record profits.
In 2023, GEICO earned more than $3.6 billion. The company is not an outlier, and Progressive generated more than $62B in revenue in the same year, up $12B from the year prior.
Become an AutoGuide insider. Get the latest from the automotive world first by subscribing to our newsletter here.
Chase is an automotive journalist with years of experience in the industry. He writes for outlets like Edmunds and AutoGuide, among many others. When not writing, Chase is in front of the camera over at The Overrun, his YouTube channel run alongside his friend and co-host Jobe Teehan. If he's not writing reviews of the latest in cars or producing industry coverage, Chase is at home in the driver's seat of his own (usually German) sports cars.
More by Chase Bierenkoven
Comments
Join the conversation