Car insurance rates continue to rise, the cause behind it

OKLAHOMA CITY ( KFOR ) — Oklahomans paying for full coverage premiums on car insurance should expect another rise in rates as this year comes to an end.

Oklahoma has one of the highest percentage increases in the country over the last year.

Car insurance in Oklahoma has seen more than a 20% increase, resulting in drivers having to pay hundreds of more dollars.

“We expect them to rise about another 11% by years end,” Chase Gardner, Data Insight Manager at Insurify said. “So, that would bring rates up over $2,300 per year for the average Oklahoman.”

More money is coming out of Oklahomans pocket as car insurance rates are increasing once again.

“There are three big factors, the first being inflation,” Gardner said. “Then on top of that, we’ve actually seen accident rates go up compared to 2019 levels.”

Oklahoma ranks top ten in car accidents and fatal car accidents per 100,000 people since 2022.

“We’ve seen accident rates and severe accident rates spike pretty heavily,” Gardner said.

The other major factor for Oklahomans is the weather.

“2023 saw the U.S. experience a record number of severe weather events, causing at least $1,000,000,000 in damages,” Gardner said. “Storm systems moving through the central U.S. like Oklahoma, hit particularly hard by hail, tornadoes as all of these things do damage to vehicles.”

Most states regulate insurance price hikes but Oklahoma is a free market state.

“We let the market really determine pricing,” Glen Mulready, Oklahoma Insurance Department Commissioner said.

He believes the system works as such.

“We believe that the market will drive that if someone is charging too much, if they’re overpricing their product, if you will, there’s 121 other companies that are ready to write business and take that from them for a lower cost,” Mulready said. “That’s how a competitive free market works.”

With rates still rising and no guarantee they will plateau anytime soon, the advice from the state is, if you don’t like the price hike of your current car insurance provider, find another.

“When you get an increase and you think that’s unreasonable or you’re not willing to do that, you really should shop around, go to an agent or multiple agents and get multiple quotes,” Mulready said.

There may be a light at the end of the tunnel though, both men News 4 spoke with said inflation continues to get better, which should slow down the increase to car insurance rates starting in 2025.

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