{"id":43914,"date":"2023-08-03T07:52:07","date_gmt":"2023-08-03T11:52:07","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/car-insurance-rates-are-rising-and-fear-of-future-increases-spurs-more-americans-to-shop-around\/"},"modified":"2023-08-03T07:52:09","modified_gmt":"2023-08-03T11:52:09","slug":"car-insurance-rates-are-rising-and-fear-of-future-increases-spurs-more-americans-to-shop-around","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=43914","title":{"rendered":"Car insurance rates are rising, and fear of future increases spurs more Americans to shop around"},"content":{"rendered":"
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This <\/em>article<\/em> is reprinted by permission from <\/em>NerdWallet<\/em>.\u00a0<\/em><\/p>\n

U.S. auto insurance owners say they feel the pinch of rising prices, and a higher percentage plan to switch insurance providers. While just 6% say they switched in the last 12 months to save money, double that proportion (12%) say they plan to switch in the next 12 months, according to\u00a0a new survey from NerdWallet.<\/p>\n

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Around half of auto insurance owners (57%) say their insurance rates rose in the last 12 months. Over the same time frame, 12% of insurance owners (defined as those who own insurance apart from health insurance) say they put off a major purchase due to the cost of their insurance.<\/p>\n

The survey of more than 2,000 U.S. adults conducted by The Harris Poll found that Americans are feeling the effects of\u00a0higher car insurance rates, but they haven\u2019t yet switched in large numbers to try to save money.<\/p>\n

Plus<\/strong>: Why are gas prices going up again? Brace for further increases, analysts say<\/p>\n

Rates on the rise<\/strong><\/h2>\n

The\u00a0average cost of full coverage car insurance\u00a0is $2,148 per year, nationally, according to NerdWallet\u2019s analysis of rates from pricing analytics company Quadrant Information Services. Full coverage insurance includes liability insurance (for the damage you may cause to other people or their property) and coverage for damage to your car.<\/p>\n

And costs for drivers are climbing. Auto insurance rates jumped 16.9% over the 12 months ending June 2023, according to the Bureau of Labor Statistics.<\/p>\n

NerdWallet\u2019s survey found that 31% of Americans with auto insurance expect their rates to rise in the next 12 months due to factors outside their control. While\u00a0auto insurance rates depend on factors\u00a0like an individual\u2019s driving history, age, location and car model, they\u2019re also affected by insurance company costs and losses.<\/p>\n

For instance, the North Carolina Rate Bureau, a group that represents insurance providers in the state, filed a request for a 28.4% increase in auto insurance rates across the state in 2023. If the rate hike passes muster with state regulators, drivers in North Carolina will be subject to increases no matter their individual driving records.<\/p>\n

It\u2019s no surprise that fewer than half of auto insurance owners (45%) think their auto insurance rate is fair.<\/p>\n

Also see:<\/strong> Used-car loans are sinking deeper underwater, study finds<\/p>\n

Switching is still relatively uncommon<\/strong><\/h2>\n

While Americans aren\u2019t universally in love with their insurance rates, that hasn\u2019t yet caused a mass switch to new insurance providers. In the last 12 months, just 6% of auto insurance owners say they\u2019ve switched to save money, the survey found.<\/p>\n

Across all insurance owners (including auto, homeowners, life, etc.), about 3 in 10 (28%) say they did any sort of comparison shopping for insurance products in the last 12 months. That skews slightly higher for millennial owners (ages 27-42), where 39% say they compared prices. In comparison, 27% of Generation Z (ages 18-26), 23% of Generation X (ages 43-58) and 24% of baby boomer owners (ages 59-77) say the same thing.<\/p>\n

While activity has been relatively low, an increase in comparison shopping may be on the horizon. About 1 in 5 auto insurance owners (17%) say their rate has not only risen, but has risen a great deal in the last 12 months.<\/p>\n

Those increases and the fear of future hikes could be behind the rise in those planning to switch providers.<\/p>\n

Don\u2019t miss:<\/strong> Six-figure employee lives like she\u2019s broke in NYC<\/p>\n

Plans to shop around<\/strong><\/h2>\n

About 1 in 8 auto insurance owners (12%) say they plan to switch insurance providers to save money in the next 12 months, according to the survey. That spikes for millennials, among whom close to 1 in 4 (23%) say they plan to switch. That\u2019s more than any other generation (with Gen Z at 14%, Gen X at 11% and baby boomers at 5%).<\/p>\n

NerdWallet\u2019s rate analysis found wide differences in the cost of a policy depending on the insurance company and other factors. A driver who shops around will see many different rates.<\/p>\n