Auto Insurance — Double-Digit Increases in 2023

S&P Global Market Intelligence tracks all things insurance. In this case, it’s auto insurance and S&P’s RateWatch report found the 10 top auto insurance companies all raised their rates by double-digits in 2023.

All but GEICO and Allstate ended 2023 with bigger rate increases than in 2022.

This is the second year in a row that rates have increased more than 10% on average. Nationwide the average increases hit 14% — up from 11.4% in 2022 — and 43 state report hikes above 10%.

S&P said the rate increases aren’t surprising because auto insurers have struggled to keep up with the frequency and severity of claims. Plus, there is more litigation these days from crashes.

Severe weather is impacting them as is increases in auto thefts.

The PIA Western Alliance state of Nevada has the highest average increase in 2023. It hit 28.3%. Washington — also a PIA Western Alliance state — is tied with Minnesota for second. Both states saw an average jump of nearly 20%.

Some states actually saw increases you could call, “normal.” Hawaii, North Carolina and Colorado all saw auto insurance hikes of less than 5% in 2022.

Here are the top-10 ranked insurance companies for auto insurance increases in 2023:

State Farm

Cumulative change from 2022 to 2023: 27.5%

Cumulative change from 2018 to 2023: 9.6%

Progressive

Cumulative change from 2022 to 2023: 22.8%

Cumulative change from 2018 to 2023: 22.4%

GEICO

Cumulative change 2022 to 2023: 29.1%

Cumulative change 2018 to 2023: 41.7%

Allstate

Cumulative change from 2022 to 2023: 30.0%

Cumulative change from 2018 to 2023: 35.9%

USAA

Cumulative change from 2022 to 2023: 26.5%

Cumulative change from 2018 to 2023: 37.4%

Liberty Mutual

Cumulative change from 2022 to 2023: 31.1%

Cumulative change from 2018 to 2023: 47.1%

Farmers Insurance

Cumulative change from 2022 to 2023: 34.7%

Cumulative change from 2018 to 2023: 54.8%

Travelers

Cumulative change from 2022 to 2023: 24.4%

Cumulative change from 2018 to 2023: 31.0%

American Family Insurance

Cumulative change from 2022 to 2023: 26.4%

Cumulative change from 2018 to 2023: 50.3%

Nationwide

Cumulative change from 2022 to 2023: 27.8%

Cumulative change from 2018 to 2023: 39.1%

Source link: Insurance Journal — https://bit.ly/492k4su