Inflation Impacts Homeowners and Auto Coverages
The average rate increase for personal lines coverages across the United States rose from 4.75% in the first quarter of 2024 to 7.6% in the second quarter.
“Some homeowners insurers are increasing rates because they feel the exposure reported is less than the replacement cost, thereby resulting in generally higher claims than anticipated. Building materials are more expensive due to inflationary pressures, so claim payments are larger than anticipated,” said Richard Kerr, CEO of Novatae Risk Group. “Auto insurance rates are up because of increased repair costs and higher-than-expected liability claims,” said Kerr.
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States.
A summary of the second quarter 2024 personal lines rates is set forth below.
| Personal Lines | |
| Homeowners under $1,000,000 value | Up 8% |
| Homeowners over $1,000,000 value | Up 9% |
| Automobile | Up 8.7% |
| Personal Articles | Up 5% |
Source: MarketScout, a Division of Novatae Risk Group
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