Minnesota Drivers, Brace Yourselves: Experts Predict MASSIVE Car Insurance Rate Hike!
Insurance experts say Minnesota drivers could see their auto insurance rates surge by 61% this year, find out why! š #News #EdinaMN #Minnesota #CarInsurance
EDINA, MN – Car insurance rates are projected to rise significantly in three states this year, with some drivers facing increases of up to 61% – and Minnesotans may be the hardest hit!
A recent Insurify report reveals that auto insurance premiums across the U.S. will increase by 22% this year, reaching an average of $2,469 annually. This follows a 24% increase in 2023.
California, Minnesota, and Missouri are expected to see the highest rate hikes, with premiums potentially jumping by 54%, 61%, and 55%, respectively.
Yup, here in Minnesota – experts say premiums could jump 61%! Uff da.
Despite a general decrease in inflation, with the rate dropping to 2.9% in July, auto insurance remains costly. This is largely due to more frequent and severe weather events causing greater vehicle damage. For example, hail-related claims grew from 9% in 2020 to 11.8% in 2023.
Maryland currently has the highest average annual premium at $3,400, and rates there are anticipated to rise by 41% to $3,748 by the end of the year. South Carolina follows with an average premium of $3,336, expected to increase by 38% to $3,687.
Other factors contributing to higher insurance costs include rising repair expenses and increased legal involvement in claims. Repair costs for labor and parts have surged by over 40%, and settlements are driving up expenses for insurers.
As a result, many drivers are reconsidering whether to file claims. A recent survey indicates that 40% of drivers who had an accident opted not to file a claim, with some concerned about potential rate hikes. Additionally, about 25% of those who did file later regretted their decision.
Experts suggest that while avoiding claims might seem cost-effective in the short term, it is generally better to file if repair costs exceed the deductible. Insurance is designed to protect against significant financial burdens following an accident. Are you worried about rising car insurance rates? Have any money-saving tips we should know about? Leave a comment below!
Written by JackAndKitty.com Midwest News Reporter Maria Garcia, with additional reporting by Jack and Kitty Norton.
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