Drivers all over the country are getting squeezed. State Farm hit one Louisiana driver with a 30 percent increase on her coverage, raising her premium to just over $1,800; a Florida driver of a VW Jetta saw his insurance go up $85 per month. And in some places the numbers don’t make much sense, as insurance adjusts their costs for “risk” as one State Farm spokesperson put it.
Combine that with how tough the last few years of doing business has been, and insurance companies are passing those costs onto their customers. Data from Bureau of Labor Statistics shows car insurance was 16 percent more expensive in July than it was at the same time in 2022; that number is also 70 percent more expensive over the last decade. Natural disasters haven’t helped matters.
“It’s more expensive to diagnose newer vehicles,” said David Woodall, a mechanic at Metro Motor in D.C. “The parts aren’t a whole lot more expensive, but the frequency of repair on them is more than it used to be. If an air bag goes off, that’s thousands of dollars — a new car might have eight air bags in it.”
In Colorado, car insurance premiums have increased 52 percent since last July as blizzards, tornadoes and hailstorms have led to an increased number of claims. And in Florida, premiums have soared 88 percent as insurers scramble to make up losses from hurricane-linked damage claims.
Louisiana, for instance, actually saw a six percent rate decrease in 2022, but it has the second highest average insurance premium in the country ($2,546) after Florida. State officials are trying to control insurance costs, but their hands are tied as they can’t do much to regulate; do something the insurance companies don’t like, and they’ll stop offering coverage to drivers like they’ve done in California, and the Southeast. Head over to The Post to check out the rest on this brewing crisis.