Insurance rate skyrocket in Oregon

Lisa Yan found that her auto insurance costs went up by 45%, and she's not alone. Insurance premiums in Oregon are rising at an unprecedented amount.

Yan's family owns four vehicles and spent about $4,000 on insurance last year. When she received her policy renewal quote three months ago, the premium went up to $5,800, with few accidents on her daughters' driving record.

Nationwide, Americans will spend about 16% more on auto insurance than they did in 2022, according to an Insurify report. Oregon, Maryland and Virginia have seen the largest increases at more than 25%.

Allan Painter, owner of Premier Insurance Group, said he noticed that premiums have been increasing at an unusual high rate.

"Every kind of insurance has been skyrocketing," Painter said, who has worked in the insurance industry for 35 years.

Premier Insurance Group, at 708 SE Mosher Ave. in Roseburg, represents different insurance companies and deals with about 200 to 300 claims each year.

State Farm CEO Michael Tipsford spoke at the Insurance Information's Joint Industry Forum on Dec. 1 where he said, "This will be the largest underwriting loss in the 100-year history of our company."

Several auto insurance companies said they are paying more claims for repairs and replacement, with the cost of parts and labor rising due to labor and supply shortage. This also causes vehicles to be in body shops longer, causing additional costs for rental vehicles. As the value of used vehicles rises, it costs companies more money in claims and all of this affects insurance rates.

In Douglas County, there are a lot of insurance claims for deer collisions, especially during mating season which starts in October, according to Premier Insurance Group.

The average American will spend $1,895 on car insurance in 2023, according to Insurify.

Brent Newton, who owns 'A' Mr. Auto of Douglas County on 884 SE Stephens St., said insurance companies were reluctant to write coverages starting in October.

"A good number of people that I quote, don't have insurance," Newton said. "It can be a vicious cycle."

From Jan. 1, 2019 until Tuesday, the City of Roseburg Police Department had written more than 3,000 citations to people for driving uninsured.

"You need a car in a small town like this to get around," Newton said.

Auto insurers are encouraging clients to install safe driving tools on their phones to track driving habits so they can receive discounts on insurance rates.

"I think things will be better in 2024," Painter said.