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Yahoo
3 days ago
- Automotive
- Yahoo
How extreme weather is increasing the cost of your auto insurance
According to the Official Data Foundation's analysis of government data, auto insurance premiums have increased 161% since 2008, outpacing general inflation by a wide margin. In the same timeframe, insured losses related to hailstorms — a major driver of auto claims — have increased fivefold in the U.S., costing an estimated $10 billion annually. Research has linked climate change to larger hailstones, which can produce deeper and bigger dents. As the incidence and severity of hailstorms, hurricanes, flooding, and tornadoes increase, insurance providers field more claims and face higher repair costs. These outcomes often prompt premium increases, particularly in areas prone to severe weather. Learn more: The insurance you need to protect your vehicle from flood damage This embedded content is not available in your region. State legislatures regulate insurance rates to prevent excessive charges. The process requires insurance companies to share detailed risk assessments and justify their expected claims and policy-management costs. Weather factors into the risk analysis and projected claims cost, both overall and on an individual policy basis. A rough weather season can cost an insurance company millions in claims across multiple insurance lines, including homeowners insurance, auto insurance, and business insurance. In the third quarter of 2024, insurer Allstate absorbed $1.2 billion of catastrophe losses spread across more than 100,000 claims related to Hurricanes Beryl, Debby, Francine, and Helene. Auto claims related to weather can arise from direct damage and a higher incidence of accidents. Causes of direct damage include: Hail. According to Matt Brannon, data journalist for Insurify, hail-related damages made up 12% of auto claims in 2023, up 9% from 2020. Brannon noted that "hail-related claims are also about 26% more costly to repair than the average repairable claim." Storm surge flooding. High floodwaters can cause extensive damage to a vehicle's electrical system and interior. Mechanical functions can also break down when the water carries dirt and sand into the engine compartment and other systems. Repair costs often exceed the car's value, prompting the insurance company to declare the vehicle a total loss. High winds. High winds from tornadoes, hurricanes, and severe storms can cause downed trees and flying objects that land on vehicles. In extreme cases, wind can pick up vehicles and slam them into buildings or the ground. Indirectly, traffic accidents and collisions are more common in poor weather conditions. Brannon reported that "wet pavement is a factor in 15% of crashes, with snow and sleet a factor in 4% of crashes." Learn more: How much does car insurance increase after an accident? Travis Hodges, managing director of VIU by HUB, a digital insurance platform, also noted the problem of severe storms occurring in areas unaccustomed to them. Drivers who are inexperienced with ice, snow, and wind can be more prone to accidents. Alongside increasingly severe weather events, other factors are pushing the cost of auto repairs higher. Insurance service provider CCC Intelligent Solutions highlights five significant trends affecting auto claim losses in its Crash Course Q1 2025 Report: Aging vehicles. Consumers are delaying new car purchases due to elevated costs and interest rates, plus supply constraints. More EVs and hybrids. EV and hybrids have more expensive parts and higher repair costs. Advanced safety features. Driver assistance features are complex and expensive to repair. Increasing medical costs. Bodily injury claim amounts are on the rise as U.S. healthcare costs escalate. The average bodily injury claim in 2023 was $26,501, up from $20,925 in 2020, according to the Insurance Information Institute. High total loss frequency. Depreciation of used cars and higher repair costs are increasing the frequency of total loss declarations. In short, auto repair costs are rising as older vehicles age and new cars become more complex. Higher healthcare expenses are also increasing auto claim costs. These trends magnify the losses related to hailstorms, hurricanes, and tornadoes, and provide more data to support higher auto insurance premiums. Learn more: Car insurance rates are climbing. Here are 4 reasons why and 11 ways to save. Brannon said drivers in areas prone to severe weather are likely to see the most significant rate increases. He cites Minnesota as an example, where insurance rates increased 58% in 2024. "The state experienced several waves of severe storms, producing heavy rainfall and record-breaking, 6-inch hailstones," Brannon explained. According to the National Oceanic and Atmospheric Administration's National Centers for Environmental Information, the South, Central, and Southeast regions of the U.S. incurred the largest cumulative weather-related damage costs between 1980 and 2024. The three states with the highest weather-related damage costs are Florida, Texas, and Louisiana. Learn more: Experts: Buy more than just the minimum amount of car insurance in Florida These conclusions were based on a review of weather events that each cost more than $1 billion in damage. Tropical cyclones, droughts, severe storms, and inland flooding were identified as the most destructive weather patterns. Learn more: Everything you need to know about car insurance in Texas According to the Bureau of Labor Statistics, the cost of auto insurance in April 2025 was up 6.4% from the prior year. Relative to two years ago, auto insurance premiums are 30% higher. Bannon said inflation and insurer losses are the two main drivers of premium increases. Climate change is a factor because weather influences insurer losses. "Climate change brings more frequent and severe storms that result in more claims and costlier repairs," Bannon explained. "When insurers pay out more in claims," he continued, "they often pass those costs onto policyholders." Hodges agreed. "Unpredictable [weather] events, combined with increases in repair costs and extended repair times, are all fueling the sharp rise in auto insurance premiums." Weather-related damages can lead to claims against your collision, comprehensive, or liability insurance. Comprehensive insurance helps pay to repair your car after a non-collision accident. This includes damage from falling trees, hail, flying objects, and floods. Comprehensive is an optional coverage that requires you to pay a deductible before any claims are paid. Collision insurance funds repair costs for your car when you are at fault in an accident. Weather can lead to a collision claim if heavy rain, wind, or icy conditions contributed to the accident. For example, you may be driving too fast in a storm and lose control on wet pavement. If you hit another car or an object, such as a tree, your collision insurance pays to fix your car. Collision, like comprehensive, is an optional coverage that has a deductible. Liability insurance pays for injuries and property repairs resulting from accidents you cause. Weather can be a contributing factor, but many liability claims are not weather-related. If someone else causes an accident that leaves you with medical bills or repair expenses, that person's liability insurance should absorb those costs. Learn more about bodily injury liability and property damage liability Gap insurance pays off your auto loan if your car is deemed a total loss and the payout is less than your loan balance. Weather can tap your gap insurance if your car is submerged and extensively damaged by a storm surge. Gap insurance is optional coverage, available for newer cars only. There is no deductible. Learn more: Most common types of auto insurance explained Tim Manni edited this article.
Daily Mail
21-05-2025
- Health
- Daily Mail
The two health conditions which could see your travel insurance premium soar by more than 1,000 per cent
Holidaymakers could find their travel insurance premiums soar by more than 1,000 per cent if they declare a certain two conditions, research from consumer website Which? reveals. Telling an insurer about a pre-existing health condition typically more than doubles the price of an annual travel insurance policy, hiking the cost from £40 to £90, according to comparison website But individuals with bipolar and personality disorder could be forced to pay as much as £446 more when declaring their conditions – a 1,159 per cent hike on their original quote. Which? compared quotes before and after declaring pre-existing medical conditions for three real people. The quotes were compared across 12 well-known insurance providers, seven of which were standard insurers while five were companies that specialise in cover for pre-existing conditions. The prices were compared for individuals with bipolar and personality disorder, epilepsy and diabetes – and the cheapest European annual policy was selected for all quotes. The average premium soared from £58 to £426 for the traveller with bi-polar and personality disorder – a 715 per cent surge – with the most expensive policy coming in at £715 and the cheapest costing £184. In the most extreme case the cost surged from £38.48 to £484.52. However, premiums climbed an average of just 23 per cent when the holidaygoer with epilepsy declared their condition. Providers added an average of just £10 to the cost, with premiums rising from £67 to £77. But it's worth shopping around as the cheapest quote was just £52 while the most expensive was more than double this at £110. The traveller with diabetes saw the smallest increase in price as quotes rose just 6 per cent on average – from £129 to £136 – when they declared their condition. The cheapest came in at £76 while the most expensive cost £169. Insurance specialists at medical screening firms Protecif and Verisk said the stability of a condition is often key to insurers, including when it was diagnosed, ongoing treatment and the side effects. Sam Richardson, deputy editor of Which? Money, said: 'Though it may be tempting to omit a condition in order to get the price down, it's never worth the risk. Failing to declare something in advance could see your policy invalidated. 'While comparison sites are a great starting point, these won't always include specialist providers - so it's essential to obtain these quotes separately before making a purchase.'
The Sun
16-05-2025
- The Sun
Holiday warning to anyone with a trip booked this summer on eight things you need to do NOW
MILLIONS of Brits will be getting ready to jet abroad for some sun, sea and sangria this summer. But before you pack your bags and head for the airport, there are a few crucial things you need to sort now to avoid holiday hell. 1 Forget the stress and save some serious pennies by tackling these eight holiday jobs today. Book travel insurance now Booking travel insurance should be one of the first things on your holiday checklist. It provides essential protection against unexpected events, such as illness, accidents, or lost luggage, saving you from potentially hefty expenses. Travel insurance also offers cover for flight cancellations, holiday disruptions, and other unforeseen hiccups that can affect your plans before you even set off. Sorting your insurance as soon as you book your trip ensures you have comprehensive protection and peace of mind well in advance. There's no obligation to purchase travel insurance from your travel agent or holiday company, though they often offer it as part of your booking. Banks, supermarkets, and insurance providers also offer travel cover, and using a comparison website can help you find the best deal tailored to your needs. To get started, you'll need to provide details such as the names and ages of all travellers, your destination, and any pre-existing medical conditions. Once you input this information, you can filter results based on the level of cover, the excess you're willing to pay, and the price. While it's tempting to choose the cheapest option, make sure to check the policy details carefully - lower-cost deals might not offer the protection you need. SPENDING ABROAD: Tips to Avoid High Fees You'll also need to decide whether to opt for single-trip cover or annual multi-trip cover, depending on how often you travel. If your requirements are more complex, consider working with a regulated insurance broker, which you can find via the British Insurance Brokers' Association. Finally, don't forget to check your current account, as some banks offer complimentary travel insurance to their customers. However, always review the details of what's included to ensure the cover meets your needs. What should you look for in a good travel insurance policy? TRAVEL insurance policies can vary a great deal, but here are some "must have Medical expenses - A good policy will give cover of £1million or more for travel in Europe and £2million or more for the USA Repatriation service - The costs of getting you back to the UK for medical reasons should be covered automatically by your policy Cancellation and curtailment - A good policy will cover you for £2,000 or more if you have to cancel or shorten your holiday Missed departure - Covers additional accommodation costs and travel expenses up to £500 or more if you miss your flight due to circumstances out of your control Delay - You'll usually be covered for £250 or more if your travel plans are delayed due to circumstances out of your control Baggage cover - Covers you if your baggage is lost, damaged or stolen. Look for policies that have cover of £1,500 or more. Check your EHIC/GHIC Next, check your European Health Insurance Card (EHIC) or Global Health Insurance Card (GHIC). These cards give you access to state-provided healthcare in many European countries at the same cost as locals. Make sure yours is valid, and if it's expired, apply for a new GHIC. You can apply for a new card up to nine months before your current card expires. These cards are free and last for up to five years. Apply by visiting the NHS Business Authority. Lock in car hire early If you're planning to hire a car for your trip, it's wise to book as early as possible. With demand soaring, prices tend to rise the closer you get to your travel dates. Securing your car hire now not only guarantees the best deals but also avoids the risk of missing out altogether. Turning up at the car hire desk without a booking can end up costing you hundreds of pounds more. You can also save up to £200 in popular holiday destinations by choosing firms or branches located outside the airport. Many of these providers even offer free shuttle services to make the process hassle-free. The best deals are usually found online through price comparison websites, so take advantage of these tools to shop around. To save even more, avoid paying for extras such as satnavs or children's car seats - bringing your own can significantly cut costs. Another key tip is to purchase your excess insurance cover in advance. Comparison sites like offer policies for as little as £15 a week. In contrast, buying this cover at the car hire desk can set you back an average of £259, according to These policies protect you against the hefty insurance excess charges you'd face in the event of an accident. Even if you buy your own excess insurance, be prepared to provide a credit card in the name of the main driver when you collect the car. This is a standard requirement for car hire companies. By planning ahead, you can save money, reduce stress, and enjoy your holiday with peace of mind. Book airport parking now If you need to park at the airport and aren't getting dropped off, book your airport parking online in advance to get the best deal. You'll save hundreds of pounds compared to paying on the day. Most airports offer on-site parking, which you can book directly via their website before you travel. Private firms also offer parking outside the airport grounds. Typically, you'll be met at the terminal, and your car will be parked for you, then returned when you arrive home. Use a comparison site such as Holiday Extras, Airpark or SkyParkSecure, but check on airport parking guide first, as it has discounts of up to 45% via its links. It's also worth opting for a flexible booking in case of any flight delays or cancellations. How to avoid drop-off fees IF you are being dropped off at the airport there are ways to avoid dreaded drop-off charges at your local airport: Aberdeen: Its long-stay car park is free for up to one hour, and there's a free shuttle bus to the terminal. Belfast City: The long-stay car park is free for up to 10 minutes. From here, it's only a small walk to the terminal. Belfast International: The long-stay car park is free for up to 15 minutes and is a six-minute walk from the terminal. Birmingham: The airport charges for its "premium set down" area, but its drop-off car park is free for up to 10 minutes. It's a 10-minute walk from the terminal. Bournemouth: There are no free parking options here. Bristol: There's a free one-hour waiting zone by the "Silver Zone' car park to the south of the terminal. East Midlands: Its "Long-stay 2" car park is free for up to an hour. It's a 15-minute walk to the terminal. Edinburgh: Its long-stay car park is free for up to 30 minutes. Exeter: There are no free parking options here. Gatwick: Free drop-offs are available at its long-stay car parks with free shuttle buses. Glasgow: You can stay for free for up to 30 minutes at its Long-stay car park. Glasgow Prestwick: There are no free parking options here. Heathrow: Drop-offs of up to 30 minutes are free in Heathrow's long-stay car parks. Leeds Bradford: There's a one-hour free parking zone, and the terminal is a three to four minute walk away. Liverpool: Its "Drop Off 2" car park is free for up to 40 minutes and is a five to 10-minute walk to the terminal. Luton: Its Mid Stay Car Park is free for up to 15 minutes. It's a 10 to 15-minute walk to the terminal. Alternatively, its Long Stay Car Park is free for one hour. Manchester: There's a free drop-off area, which is a short shuttle bus ride away from the terminal. Newcastle. Its "Short Stay 2" car park is free for up to 15 minutes. Norwich: There are no free parking options here. Southend: Its "Long Stay 3" car park is free for up to 15 minutes. Southampton: There are no free parking options here. Stansted: Its mid-stay car park is free for an hour. There's a free shuttle bus to the terminal every 10 minutes. Get yourself a fee-free card Using your credit or debit card abroad can cost you up to 5% in fees, and withdrawing cash from an ATM might add around £5 per transaction. However, some cards let you spend abroad without any extra charges, so it's worth finding the right one. For fee-free spending and cash withdrawals abroad, consider these options: First Direct: No fees for paying or withdrawing with its debit card overseas. Santander Edge Current Account: No fees for transactions or withdrawals abroad, but it costs £3 a month, and you must deposit at least £500 monthly. Starling: No fees for spending or cash withdrawals abroad. Monzo: No fees for spending or cash withdrawals abroad. Chase: No fees for spending or cash withdrawals abroad. Many credit cards charge a 3% foreign transaction fee, but some offer fee-free spending: Barclaycard Rewards Card: No transaction fees abroad and uses Visa's exchange rate for better value. NatWest Credit Card: Fee-free spending abroad with no extra charges. Alternatively, consider a pre-paid travel card. These are not linked to your bank account and need to be topped up before your trip, helping you stick to your budget. Save on foreign currency Make your travel money go further by keeping an eye on exchange rates and buying your currency when the pound is strong. Planning ahead can save you a significant amount compared to last-minute exchanges. Order your foreign currency online before your trip to avoid the poor exchange rates often found at airport bureaux de change. Using tools like TravelMoneyMax on can help you compare rates from various providers, ensuring you get the best deal for your holiday cash. Sort out your mobile data Roaming fees can catch tourists off guard, leaving them with hefty bills that could spoil their holiday. These fees are charged when your mobile connects to a local network overseas to access the internet, make calls, or send texts. Depending on your provider, you may face a daily charge or pay based on the amount of data used. Research by Uswitch found roaming fees can reach up to £7 per MB, meaning costs can quickly spiral without you realising. Additionally, Ofcom reported that 14% of UK customers had experienced accidental roaming in the past. To avoid unexpected charges, check your mobile provider's roaming policy before you travel. If free roaming is included in your plan, you're in luck. If not, consider purchasing a travel data package to control costs. Alternatively, rely on free Wi-Fi hotspots or purchase a local SIM card once you arrive at your destination. Planning ahead can save you money and stress while abroad. How to avoid roaming charges SIMRAT Sharma, a mobiles expert at Uswitch, said switching to an eSIM - short for embedded SIM - can be cheaper than using international roaming. She said: "eSIMs make it easier to change networks. "So for example, if you're abroad you can quickly connect to the local network to pay local rates - without having to add or swap a physical local SIM card for your device. "This means travel eSIMs are almost always cheaper than using international roaming, as users are effectively tapping into the same network plans as locals. "If you're regularly switching numbers or travelling to different locations, you'll be able to keep them all safely in digital format rather than carrying around a number of small cards. "The software can easily be accessed via your device's app store and uploaded to your phone in a few quick steps." Re book to save Holiday cancellations are awful, especially when you're already travelling and get stranded. However, cancellations can also be beneficial if you use them strategically to save money on your trip. The trick is to monitor prices as your departure date approaches. You might find that hotel room rates have dropped since you initially booked. If you spot a lower price for the same room at the same hotel, you can cancel your original booking (assuming it's cancellable without fees) and rebook at the cheaper rate. Alternatively, you could use the price drop as an opportunity to upgrade to a better hotel for a similar price. Comparison websites like Expedia, Kayak and Travel Supermarket can help you quickly check prices. Keep in mind that prices might rise closer to your travel dates, so check periodically in advance. The most important thing is to ensure you can cancel your original booking without incurring any charges, otherwise, it's best to stick with your existing plans.
