Higher auto insurance rates are stressing American drivers
Among drivers age 18-34, 17% said they went without insurance during the past year. Cost was a big reason why.
Around 40% of insured drivers in the U.S. said they are stressed about the cost of car insurance, according to a survey from Policygenius, which found a similar number of drivers (43%) are paying more for auto coverage than they did in 2022.
Around 15% of drivers across demographics said they were very stressed about being able to afford coverage, while 24% of drivers age 18-34 said they were very stressed about affording insurance, Policygenius reported.
While premiums are increasing, most drivers aren’t considering dropping coverage completely. However, younger drivers (age 18-34) are more likely to consider driving without coverage and 17% of the cohort did just that during the past year, according to Policygenius. In comparison, 8% of drivers age 35-54 and 1% of the 55 and older crowd drove without insurance.
“Our survey found that people are changing their behaviors, and sometimes even going so far as to take a major financial risk by driving completely uninsured,” Andrew Hurst, licensed property and casualty insurance expert at Policygenius, said in a release. “Car insurance is getting expensive for most people, but there are ways you can make your insurance more affordable. Re-shopping your insurance before it’s time to renew is the best way to make sure you’re getting the right coverage at an affordable price, but you can also check to see if there are any discounts you qualify for and adjust your coverage based on your car’s age and value.”
Just looking
J.D. Power reported auto insurance shopping rates hit a two-year high in March as consumers sought relief from growing premiums. More than 40% of those shopping for auto coverage said a rate increase was the impetus.
While a lot of drivers were shopping around for coverage, Policygenius reported only 15% actually switched auto insurers because of higher rates during the past 12 months.
Drivers age 18-34 were not only more likely to shop around, they were also more likely to switch carriers. During the past 12 months, a quarter of young drivers switch car insurance companies, compared with 14% of drivers aged 35-54 and 10% of drivers older than 55.
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