ATLANTA – Have your car insurance costs gone up recently? If so, you’re not alone – and it’s probably not your fault.

We recently asked our Facebook followers if they had noticed an increase in their car insurance premiums, and nearly 2,000 people responded with a resounding “yes.” For the vast majority of these individuals, nothing had changed – they hadn’t bought a new car, been in an accident, gotten a ticket, added anyone to their policy, or moved. Yet FOX 5 viewers reported that their premiums had increased by 10 to 30%, and in some cases even more.

With so many people affected by these unexpected increases, we decided to take a closer look at what’s happening in car insurance and see if we can find some answers.

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How much has car insurance increased recently?

According to a recent report from Bankrate, average nationwide premiums for fully comprehensive car insurance in 2024 will be $2,543 per year, or $212 per month, a 26% increase from 2023. Drivers with minimum coverage will pay an average of $740 per year, or $62 per month.

The average cost of comprehensive insurance for a driver in Georgia is $2,610, which is only slightly higher than the national average. The average cost of comprehensive insurance for an Atlanta resident is $2,859.

Between 2017 and 2021, the nationwide average expenditure on motor vehicle insurance rose by only 5.27 percent.

The state of Missouri saw a massive 44% increase, the largest increase of any state. Louisiana ($3,618 or 6.53% of income) has the highest actual average cost, followed by Florida ($3,945/5.69%), Michigan ($3,356/5.01%), Nevada ($3,549/4.91%), and New York ($3,840/4.83%).

Actual insurance costs are lowest in Massachusetts ($1,655/1.76%), followed by Hawaii ($1,654/1.79%), Washington ($1,643/1.80%), New Hampshire ($1,636/1.82%), and Vermont ($1,353/1.83%).

Note: To determine the true cost, Bankrate’s insurance editors analyzed the total percentage of household income spent on car insurance.

Only in Wyoming did costs actually fall, but only by one dollar. Washington, North Carolina, Minnesota and Ohio were also not affected by any major price increases.

In metropolitan areas, car insurance costs are highest in Detroit, Philadelphia, St. Louis, Orlando and New York. Residents in a large metropolitan area pay the least in Seattle, Boston and Washington DC. The smallest increases in metropolitan areas were in Los Angeles, Portland, Seattle, Minneapolis and Charlotte.

What is behind the increased costs of car insurance

According to experts, car insurance premiums have risen significantly in recent years for the following reasons:

Rising repair costs: The cost of repairing modern vehicles has increased due to more advanced technology, expensive parts, and labor costs. Although these things often help prevent very costly accidents and collisions, they are also very expensive to repair.

2017:

• Average cost of minor car repairs: Approximately 200 to 400 US dollarsThis may include basic repairs such as installing a brake pad, replacing a battery, or minor engine adjustments.
• This may include basic repairs such as installing a brake pad, replacing a battery, or minor engine adjustments.

2024:

• Average cost of minor car repairs: Approximately 300 to 600 US dollars.

Note: The above figures vary depending on the type of car and where you live. These are national averages.

Increased frequency of damage: More accidents, likely due to more driving and distracted driving, have led to more insurance claims. The number of people involved in accidents/collisions following the COVID-19 pandemic has also increased dramatically. In addition, people are more likely to file claims and demand compensation for even minor things like a scratched bumper or a small dent than before 2020.

In 2023, there were approximately 5.5 million auto insurance claims in the U.S., with collision claims being the most common, at a frequency of about 4.2 per 100 insured vehicles. The severity of these claims increased significantly due to rising repair costs and vehicle complexity. Comprehensive claims, which cover non-collision incidents such as theft and natural disasters, were also common, at a frequency of 3.15 claims per 100 insured vehicles, and saw an increase in severity due to extreme weather events.

Personal injury claims were less common (0.78 per 100 insured vehicles), but were the most costly for insurers, reflecting rising medical costs and more serious accidents. Property damage claims were slightly more common, at 2.28 per 100 vehicles, with costs continuing to rise due to more expensive vehicle parts and labor costs. Total loss claims, where vehicles are deemed beyond repair, also increased, particularly in severe collisions, reflecting the rising costs and complexity of modern vehicle repairs.

inflation: General inflation has pushed up the cost of services, including vehicle repairs and medical expenses.

According to recent reports, there are signs of a moderation in inflation in many parts of the world, including the United States. Although inflation has declined from its peak, prices for many goods and services remain elevated compared to pre-pandemic levels. The pace of price increases has slowed, but prices themselves are still high. Financial analysts say this is not expected to change in the near future.

Natural disasters: More frequent and severe weather events have resulted in higher levels of damage, particularly in areas prone to natural disasters.

Other factors that affect auto insurance premiums include underwriting and claims processing/costs, type and amount of insurance purchased, increases in population density and residents’ disposable income, rising crime rates and auto thefts, changing driving habits, stricter state laws, and more. To learn more about these factors, click here.

Is there someone drivers can complain to?

Drivers concerned about the rising cost of their car insurance can file complaints or raise concerns with several organizations and authorities:

State Ministry of Insurance: In Georgia you can contact the Fire Prevention Officer for the Georgia Office of Insurance and SafetyThis office regulates insurance companies operating in the state and can investigate complaints about unfair rate increases or other insurance practices. Drivers can file a complaint online or contact the office directly.

Consumer Financial Protection Bureau (CFPB): Although the CFPB primarily deals with issues related to financial products, it also receives complaints related to insurance. Filing a complaint with the CFPB can help raise awareness of widespread problems.

Better Business Bureau (BBB): The BBB tracks complaints against businesses, including insurance companies. Although they don’t regulate insurance rates, filing a complaint can help drivers resolve disputes and alert other consumers to potential problems.

National Association of Insurance Commissioners (NAIC): The NAIC is an organization that regulates the insurance industry in various states. It provides resources and can refer drivers to the appropriate state’s insurance agency.

Elected officials: Contacting state legislators or members of Congress can also be an effective way to raise concerns about rising insurance costs. They can advocate for changes in legislation or increased oversight of the insurance industry.

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