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Car insurance rates could jump 50% in three states this year. Here’s where they are.
There’s some bad news ahead for the nation’s car owners, with a new report forecasting that auto insurance — one of the biggest drivers of inflation this year — will continue to rise in 2024. In fact, residents of three states could see their coverage rates spike by 50% in 2024.
That’s according to a new report from Insurify, a company that provides data about auto insurance rates. The typical U.S. insurance policy will jump 22% this year to an average annual premium of $2,469 by year-end, the report found. That comes after drivers saw their policies jump 24% in 2023, it noted.
The three states where insurance rates could jump by more than 50% this year are California, Minnesota and Missouri, the Insurify report found. Drivers in those states could see their rates rise by 54%, 61% and 55%, respectively.
Auto insurance remains a pain point for consumers after experiencing more than two years of elevated inflation. And even as the overall inflation rate is cooling — the Consumer Price Index dropped to 2.9% in July, the first time since March 2021 it’s dropped below 3% — drivers are continuing to see their policy rates rev up, fueled by more climate events that are causing vehicle damage.
“Increasingly severe and frequent weather events are driving up auto insurance premiums,” Insurify said in its report. “Hail-related auto claims represented 11.8% of all comprehensive claims in 2023, up from 9% in 2020, according to CCC Intelligent Solutions.”
Drivers in Maryland currently pay the highest average rate, at $3,400, for annual full coverage as of June, the Insurify analysis found. Their rates are projected to jump 41% to $3,748 by year-end, it noted. The second most expensive state is South Carolina, with an average policy premium of $3,336 in June. That could rise by 38% to $3,687 by the end of the year.
As CBS News has reported, there are a few additional reasons, aside from climate events, that are driving up auto rates — even if your driving record hasn’t changed.
First, the costs paid by insurance providers to repair vehicles after an accident, such as for labor and parts, have increased more than 40%, and insurers are passing those increases onto drivers. Secondly, because lawyers are more often involved in handling accident claims than in prior years, settlements are increasing, which also boosts insurance costs.
Some drivers are avoiding filing claims
The surge in auto insurance rates is prompting drivers to change their behavior, according to a new report from LendingTree.
About 4 in 10 insured drivers who have been in an auto accident or incident have skipped filing a claim with their insurance company, its survey of 2,000 U.S. consumers found. About one-quarter of drivers who filed a claim said they later regretted it.
Drivers who avoided filing a claim said they did so because the damage was minimal or the deductible was higher than the cost to fix their vehicle. But another 42% said they skipped an insurance claim because they didn’t want their rates to jump.
“Once you’ve been involved in an accident of any type, insurance companies see you as riskier to insure,” LendingTree auto insurance expert and licensed insurance agent Rob Bhatt said in a statement. “Your rates will eventually come down if you avoid claims for three to five years, depending on your insurance company. But you’re going to feel a financial squeeze until then.”
Still, Bhatt said it’s typically worth filing a claim if the repairs will cost a few thousand more than your deductible, even if your rates subsequently rise.
“The whole point of having car insurance is to prevent an accident from leaving you in financial hardship,” he said.
TRENTON, N.J. — Democratic Newark City Council President LaMonica McIver has defeated Republican small businessman Carmen Bucco in a contest in New Jersey’s 10th Congressional District that opened up because of the death of Rep. Donald Payne Jr. in April.
McIver will serve out the remainder of Payne’s term, which ends in January. She and Bucco will face a rematch on the November ballot for the full term.
McIver said in a statement Wednesday that she stands on the “shoulders of giants,” naming Payne as chief among them.
She cast ahead to the November election, saying the right to make reproductive health choices was on the ballot as well as whether the economy should benefit the wealthy or “hard working Americans.”
“I will fight because the purpose of politics and the purpose of our vote is to give the people of our communities and our nation a bold voice,” she said.
Bucco congratulated McIver on the victory in a statement but said he’s looking forward to the rematch in November.
“I am not going anywhere,” he said in an email. “We still have a second chance to make district 10 great again!”
Who are LaMonica McIver and Carmen Bucco?
McIver emerged as the Democratic candidate in a crowded field in the July special election. A member of the city council of New Jersey’s biggest city since 2018, she also worked for Montclair Public Schools as a personnel director and plans to focus on affordability, infrastructure, abortion rights and “protecting our democracy,” she told The Associated Press earlier this summer.
Bucco describes himself on his campaign website as a small-business owner influenced by his upbringing in the foster system. He lists support for law enforcement and ending corruption as top issues.
The 10th District lies in a heavily Democratic and majority-Black region of northern New Jersey. Republicans are outnumbered by more than 6 to 1.
It’s been a volatile year for Democrats in New Jersey, where the party dominates state government and the congressional delegation.
Among the developments were the conviction on federal bribery charges of U.S. Sen. Bob Menendez, who has denied the charges, and the demise of the so-called county party line — a system in which local political leaders give their preferred candidates favorable position on the primary ballot.
Democratic Rep. Andy Kim, who’s running for Menendez’s seat, and other Democrats brought a federal lawsuit challenging the practice as part of his campaign to oust Menendez, who has resigned since his conviction.
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Sean “Diddy” Combs at same Brooklyn detention center that held R. Kelly, Sam Bankman-Fried, other high-profile inmates
A second judge refused to grant bail to Sean “Diddy” Combs on Wednesday and he could remain in federal custody at a Brooklyn detention center until his trial for sex trafficking charges. Combs joins other high-profile inmates, such as singer R. Kelly, fallen cryptocurrency mogul Sam Bankman-Fried, rapper Ja Rule —even Al Sharpton served a brief stint— who were held at the same federal detention center.
Notorious for its horrible conditions —inmates won a $10 million class action settlement after enduring frigid conditions during an 8-day blackout in 2019— the waterfront industrial complex, MDC Brooklyn, houses 1,200 inmates.
JOHANNES EISELE/AFP via Getty Images
Violence and corruption have long plagued the facility; U.S. District Judge Gary R. Brown of the Eastern District of New York wrote the detention center had “dangerous, barbaric conditions” in a recent sentencing opinion. Two inmates were stabbed to death in recent months and several correction officers have been convicted for smuggling contraband and accepting bribes.
Combs joins a list of high-profile personalities that have landed at the MDC Brooklyn, partly because the city’s other federal detention center, MDC New York, closed in 2021, also due to horrible conditions. The disgraced financier Jeffrey Epstein died by suicide in his cell there in 2019. “Numerous and serious” instances of misconduct among corrections staff gave Epstein the opportunity to kill himself, a subsequent federal watchdog investigation found.
Kelly sued the federal detention center in 2022 for wrongly putting him on suicide watch after his sentencing. Kelly sought $100 million because he said the detention center knew he wasn’t suicidal after he was convicted in 2021 for racketeering and violating the Mann Act, which bars transporting people across state lines for prostitution.
Yuki Iwamura/Bloomberg via Getty Images
Former crypto billionaire Bankman-Fried survived on bread, water and sometimes peanut butter when he was in the MDC Brooklyn, his attorney said, because the detention center continued to serve him a “flesh diet” despite requests for vegan dishes.
Ja Rule stayed at the MDC Brooklyn for a brief time before being released after serving most of his two-year sentence for illegal gun possession. Most of his prison time was spent in a state prison in New York.
Sharpton served a 90-day sentence in 2001 and went on a hunger strike for protesting the U.S. Navy bombing of the island of Vieques, in Puerto Rico.
Combs was taken into custody on Monday and according to an indictment unsealed Tuesday he was charged with sex trafficking, racketeering conspiracy and transportation to engage in prostitution.
His attorney Marc Agnifilo told CBS News, “It’s impossible to prepare for a trial from where he is,” after a first federal judge denied Combs bail on Tuesday.
U.S. Magistrate Judge Robyn Tarnofsky agreed with prosecutors who argued the hip-hop mogul, who is accused of using his business empire as a criminal enterprise to conceal his alleged abuse of women, is a flight risk and poses an ongoing threat to the safety of the community.
Agnifilo said the part of the detention center where Combs is being held is “a very difficult place to be.”
contributed to this report.
