Wisconsin Car Insurance Rates Increased 38.9% in 2024. What Led to the Rise in Rates?
In 2022, Quadrant Information Systems reported that the average cost of a full-coverage auto policy in Wisconsin was $1,219. However, within just one year, that average has surged to $1,694, representing a significant increase of nearly 39%. This price escalation surpasses the increases observed in all but six other states in the United States.
While a portion of this increase can be attributed to national trends that have elevated the average car insurance rate by 16% across the country, Wisconsin has specific local factors that may have contributed to its higher-than-average rise.
Full coverage auto insurance policies encompass comprehensive coverage, which accounts for repair and replacement costs resulting from incidents other than collisions. Although the list of covered damages is extensive, many of these claims are associated with severe weather occurrences such as tornadoes, flooding, hail, and more.
The impact of severe weather events have become more frequent throughout the country, including in Wisconsin. The Wisconsin Office of the Commissioner of Insurance highlights that the state has witnessed an increase in intense and frequent heavy rains, leading to flooding, damaged roads and bridges, failed dams, injuries, and illnesses. Consequently, insurers in Wisconsin face a significantly higher likelihood of paying out on comprehensive claims.
Animal collisions, particularly with deer, contribute significantly to car insurance claims in various regions. Notably, Wisconsin experiences some of the highest rates of animal collisions in the nation. According to data from the Insurance Information Institute (III), drivers in Wisconsin have a one in 60 chance of filing a claim related to an animal collision. This statistic positions Wisconsin drivers as the fourth-most likely in the country to make such a claim, alongside motorists from Michigan.
In recent years, the surge in medical expenses has been a significant factor contributing to the rise in injury claims, which in turn has become a major expenditure for auto insurance providers. According to the U.S. Bureau of Labor Statistics (BLS), healthcare costs in the United States have witnessed a substantial increase of 31% between 2012 and 2022. Moreover, the escalation in medical costs has further intensified, with a notable 8.5% rise within a span of just three years from 2019 to 2022. Consequently, insurers are compelled to allocate higher payouts for injury-related claims, ultimately leading to increased premiums for drivers not only in Wisconsin but also in other regions.