Perfect Storm of Accidents, Labor, and Weather Drive Auto Insurance Costs Up Over 20%

Auto insurance costs rising rapidly, up 20.6% in February over last year, driven by increase in accidents, severity of accidents, and geographical factors

More severe claims leading to higher loss ratios for insurers, with more bodily injury claims and expensive repairs

Labor costs rising with minimum wage hikes; lack of technicians for complex repairs also pushing costs higher

Weather catastrophes like hurricanes straining insurers, especially in states like Florida and Louisiana

While claims frequency dropping a bit recently, expectations are costs will remain elevated for the foreseeable future