EVs, High-Tech Vehicles: Powering Surge in Insurance Stocks!

January 30, 2024
1 min read

Allstate (NYSE:ALL) and iShares U.S. Insurance ETF (ARCA:IAK) have seen a surge in their stocks in 2024 due to rising motor vehicle insurance costs. Repair costs for electric vehicles (EVs) are 49% higher compared to traditional vehicles, leading to the fastest increase in auto insurance rates in decades. The complexity and costliness of repairing modern vehicles, especially those equipped with advanced technologies, has contributed to this trend. Insurance company stocks have outperformed the S&P 500 index, with the iShares U.S. Insurance ETF experiencing a 5% increase in January. EVs typically require over 20 days for repairs, which is 40% more time than needed for non-EVs. The top-performing insurance stocks include Oscar Health, Kemper Corporation, and Kinsale Capital Group.

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