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Navigating Rising Insurance Rates in 2024

Jason Storoschuck • Feb 09, 2024
As we step into the early months of 2024, it's important for all insurance clients to be aware of the evolving landscape in homeowners and auto insurance. At S&K Insurance, our goal is to keep you informed and prepared for the changes ahead, especially regarding the expected premium increases across both sectors. Despite these challenges, we're dedicated to helping you manage your budget effectively while ensuring you have the essential coverage you need.

Understanding Auto Insurance Premium Increases in 2024

Several factors are contributing to the anticipated rise in auto insurance premiums this year:
  • Theft Rates: An uptick in vehicle thefts continues, with a 2% increase in the first half of 2023 compared to the same period in 2022. This follows a significant surge in 2022, marking the highest theft rate since 2008.
  • Impact of the UAW Strike: The auto workers strike in fall 2023 is expected to lead to increased cycle times for vehicle repairs and higher prices for non-OEM parts, affecting overall vehicle costs.
  • Vehicle Repair Costs: Despite a more modest increase of 4.6% in repair costs through the second quarter of 2023, these costs continue to be a factor in rising premiums.
  • Limited Inventory and Higher Replacement Costs: The scarcity of vehicles has inflated car values and replacement costs, contributing to higher insurance premiums.
  • Severe Weather: Insurance companies are adjusting premiums to offset millions in losses from natural disasters.
  • Rising Medical Expenses: With medical costs climbing, auto insurers face higher payouts for bodily injury claims, necessitating increases in premiums.
These factors, whether individually or combined, are poised to push auto insurance prices higher throughout 2024.

The Outlook for Homeowners Insurance in 2024

Homeowners insurance rates are also expected to climb, driven by several key trends:
  • Increased Natural Disasters: A dramatic rise in natural disasters has led to more severe and frequent claims, pushing premiums higher. The loss from natural disasters has surged by almost 700% since the 1980s.
  • Insurer Caution: Following significant weather events, many insurers are choosing not to renew policies in high-risk areas or are exiting states like Florida and California entirely.
  • 2023 Rate Hikes: Major insurance providers have already implemented significant rate increases, and there's no indication that this trend will slow down in 2024.
How to Manage Rising Insurance Costs

Despite these challenges, there are strategies you can employ to mitigate the impact of rising insurance costs:
  • Bundle Your Policies: Combining your home and auto insurance can lead to savings.
  • Keep Your Coverage Current: Regularly review your policies to ensure they're up-to-date and reflect your current needs.
  • Policy Review and Shopping: Schedule a policy review with us. We can explore new discounts and compare policies across multiple carriers to find the best fit for you.
We understand that navigating insurance in 2024 may seem daunting. S&K Insurance is here to guide you through these changes and help you find ways to stay well-insured without stretching your budget. If you have any questions or wish to discuss your insurance needs further, please don't hesitate to contact us.

Your peace of mind is our priority. Let's work together to ensure that you remain protected through the upcoming changes in the insurance landscape.
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