Car insurance rates are constantly changing, and it's always nice when they're working in your favor. Luckily, nearly 8 million Americans renewing their policies in the first half of 2020 will see their car insurance rates drop slightly.
According to this data, more Americans will see changes work in their favor than against - about 7.7 million Americans across the US will see their rates decrease, while about 5.6 million Americans will see increases when they renew their policies.
Before changing rates, car insurance companies must submit proposed changes to state and federal regulatory boards. Business Insider gathered data on proposed car insurance rate changes through S&P Global Marketing Intelligence and the National Association of Insurance Commissioners, looking at about 1,100 proposed rate changes slated to take effect in the first half of 2020.
Where are rates changing?
Kentucky, Louisiana, and Kansas drivers will see the most broad changes. In Kentucky, 1.5 million drivers will see their rates fall by an average of 5%. Just over 1 million Louisiana and Kansas drivers will see their rates fall by an average of 1.6% and 1.9%, respectively. Other states where many drivers can expect to see changes include Michigan, Arkansas, and Mississippi.
Of the 5.6 million Americans who will see rate increases when they renew their policies, just over a fifth are South Carolina drivers. About 1.2 million drivers in South Carolina, or about 20% of the state's population, can expect to see rates increase by an average of 6.7%. Other states with big changes include Illinois and Indiana, with over half a million drivers affected each.
Why do car insurance rates change?
Car insurance rates increase and decrease often, as insurance companies deal with changing costs of medical care and car repair, for example, and a constantly changing numbers of accidents. Insurance companies can also change their underwriting process, or the process for evaluating a driver's risk of an accident and determining their cost of coverage. Car insurance rates are also largely influenced by state laws and policies, and when state laws change, car insurance prices can, too.
Car insurance rates are highly individual, and can vary widely based on factors like your age, gender, driving history, credit score, and more. Not every driver's rates will follow the trends. However, if your rates are on the rise, it may be worth comparison shopping for coverage. Get quotes from several different insurance companies, and compare the offers to find the policy with the most coverage types and highest limits for the lowest premium.
Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.
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