(NEXSTAR) – If you like your car insurance company right now, consider yourself lucky.
A combination of multiple factors, including climate-driven natural disasters, inflation and the soaring prices of new cars, among others, is projected to send premiums rocketing higher in 2024, according to a study by online insurance marketplace Insurify.
After rates climbed 15% nationwide in the first half of the year, Insurify projects coverage to spike 22% during 2024, but some states will be hit especially hard.
Thanks in part to severe storms and wildfire damage that resulted in massive payouts, three states are set to experience increases over 50%, the study found: California (54%), Missouri (55%) and Minnesota (61%).
For companies that bundle home and auto insurance, for instance, widespread destruction from severe weather events – especially in areas that doesn’t usually see it – can force insurers to raise costs, or even cancel policies .
Missouri and Minnesota have both seen extreme hail storms this year, triggering a flood of insurance claims, and California’s devastating wildfires continue to burn annually. In March, State Farm announced it would stop renewing tens of thousands of homeowner policies in the Golden State.