Market Trends: Rising Auto Insurance Rates

Auto insurance costs rose 22% between March 2023 and March 2024, according to the Bureau of Labor Statistics Consumer Price Index for All Urban Consumers. It was the largest unadjusted change since December 1976.

Various sources speculate that auto premiums will continue to rise throughout 2024, but not as swiftly as in the previous two years.

The 2024 index has shown signs of slowing, with reports that the Federal Reserve may cut interest rates in late 2024. However, auto rates will stay on the incline as insurance companies recover from losses due to extreme weather and the cost of vehicle repairs.

For now, auto insurance is in a hard market. Auto rates remain high while insurance companies remain selective about who gets the best rates. But you can try these strategies to secure better rates.

How can you lower your auto insurance premium?

Ask your agent about these potential savings moves:

  • Bundle your car and property insurance.
  • Pay the entire policy upfront instead of monthly.
  • Enroll in autopay.
  • Go paperless.
  • Try telematics.
  • Get good student driver discounts.
  • Improve your credit score.
  • Raise your deductible. (You’ll pay a lower monthly premium but more out of pocket if you’re in an accident. Choose an out-of-pocket amount that works for your budget.)

At TGIF Solutions, you can get quotes from multiple carriers to find the most affordable coverage. Speak with one of our agents today.