Car insurance premiums soar on average with car insurance
Consumers are paying more and more for auto insurance, according to a new report by the consulting firm Avalere Health.
According to the latest Avalere Insights data, a 2016 driver’s policy with an average annual deductible of $2,700 increased by nearly $200 in 2017 to an average of $4,100.
For 2017, the average monthly deductible for a driver’s plan with a maximum deductible of at least $4.6 million increased by $200 to $4-6 million.
Meanwhile, premiums on car insurance policies with an annual deductible under $1,000 increased by more than $200, or by about 5%.
Consumers are spending more and are paying for it, the Avalere report said.
The rise in premiums is partly due to an increase in the number of drivers with the highest rates, according the report, which was published Wednesday.
It’s also partly due “to the high cost of insurance for older drivers and the growing cost of the individual market, which includes new policies,” the report said, adding that a large share of this rise is because older drivers are paying a higher premium rate for the same coverage.
The Avalere study was based on a survey of more than 11,000 consumers and found that the average premium for a car policy was $1.891 in 2017, up from $1.,749 in 2016.
For a policy with a minimum deductible of under $4 million, the premium rose by about $200.
The average premium increase for policies with a max deductible of between $4 and $6 million was about $2.75, the report found.
The premium increases are largely concentrated among the lowest income and higher-earning Americans, the researchers found.
Car insurance rates rose in 2017 for the first time since at least 2010.
The report found that premiums for drivers with a policy in the top 5 percent of the population grew by nearly 2.3 percentage points between 2016 and 2017.
For the same time period, premiums for those with a higher-income, middle-income and lower-earner policy grew by less than 0.3 percent, the study found.