Business & Tech
27% Car Insurance Spike Expected In VA For 2024
Virginia drivers should expect to see their car insurance cost increase by nearly 30 percent on average this year, an industry study said.
VIRGINIA — Car insurance rates in Virginia are projected to see a 27 percent annual increase in 2024. The average cost per year for coverage tops out at $2,172, according to a recent analysis by Insurify.
Neighboring Maryland pays the most for car insurance, at $3,400 annually. New Hampshire drivers pay the least, at an average of $1,000 annually.
Increasingly severe and frequent weather events are driving up auto insurance premiums nationwide. Hail-related auto claims represented 11.8% of all comprehensive claims in 2023, up from 9% in 2020, according to CCC Intelligent Solutions.
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Virginia's car insurance on average is $1,999 in June 2024, according to the insurance website, which cited climate change, increased car thefts and new legislation as reasons rates are going up nationally.
During COVID-19 shutdowns, many states froze rate increases, so many people saw drastic rate hikes in 2023 after those restrictions were lifted, said Mallory Mooney, director of sales and service at Insurify, according to the website.
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“Insurers are still playing catch-up, and it’s too little too late for a lot of them. Insurers have had to pull out of some markets completely.”
Nationally, Insurify projected that car insurance rates will increase 22 percent in 2024, less than the 24 percent spike they saw in 2023. As of June, the average annual cost for full coverage was $2,329, but it is expected to end the year at $2,469.
“Insurers implemented higher rate increases to account for changes in the frequency and severity of auto losses,” said Betsy Stella, vice president of carrier management and operations at Insurify, according to the website.
“The COVID-19 pandemic and following inflation, especially in the price of vehicle maintenance and repairs, along with changes in driving behaviors, led to new loss trends that increased the difficulty of rate setting.”
Maintenance and repairs cost almost 38 percent more than they did five years ago, according to Insurify, citing the U.S. Bureau of Labor Statistics.
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