![Cybertruck, 6.25](https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=150%2C100 150w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=200%2C133 200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=225%2C150 225w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=300%2C200 300w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=400%2C267 400w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=540%2C360 540w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=640%2C427 640w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=750%2C500 750w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=990%2C660 990w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=1035%2C690 1035w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=1200%2C800 1200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=1333%2C888 1333w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=1476%2C984 1476w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/cf/3cf16d04-3337-11ef-809e-1fa4da203a1e/667b32150dd5f.image.jpg?resize=1763%2C1175 2008w)
Joe Smith's Cybertruck is seen on Tuesday in Lincoln.
Futuristic cars are taking to the streets in Lincoln, and local residents have differing opinions on them.
Tesla鈥檚 2024 Cybertruck became available in late November, and a handful have made their way to the Capital City.
Two months ago, a Reddit user shared a picture of a Cybertruck at Holmes Lake, saying the owner was very kind to let him and his children take pictures with the truck and even sit inside. Numerous comments on the post called the vehicle 鈥渦gly鈥 or 鈥渨eird looking.鈥澛
Others responded that they found the idea 鈥減retty cool鈥 and enjoyed seeing the 鈥渋nnovation and creativity in vehicles.鈥 A few commenters said it looked better in person than they expected from pictures circulating the internet.
![Cybertruck, 6.25](https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=150%2C100 150w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=200%2C133 200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=225%2C150 225w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=300%2C200 300w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=400%2C267 400w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=540%2C360 540w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=640%2C427 640w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=750%2C500 750w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=990%2C660 990w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=1035%2C690 1035w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=1200%2C800 1200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=1333%2C888 1333w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=1476%2C984 1476w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/9b/49b6b4f4-3337-11ef-bed5-13803c16ec42/667b322a75a8e.image.jpg?resize=1763%2C1175 2008w)
Cybertruck owner Joe Smith sits in the driver's seat of his truck on Tuesday in Lincoln.
鈥淚n person, it just looks surreal, like it shouldn鈥檛 exist,鈥 said Joe Smith, who recently purchased his own Cybertruck. 鈥淢y opinion is it looks futuristic and other trucks just look old now. So for me, I really like the look of it, but I understand it鈥檚 different, it鈥檚 divisive.鈥
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For the most part, Smith, a local software engineer, has had pleasant interactions with community members who stop to inquire about the truck鈥檚 features such as the engine charge and towing capacity.
鈥淚鈥檓 usually happy to talk about it if someone鈥檚 interested in it just because it excites me when people are excited to talk about electric cars,鈥 Smith said.
He also enjoys taking the chance to roll up the bed cover and drop the tailgate to reveal the 4-foot by 6-foot truck bed.
According to Tesla, Cybertrucks have an 11,000-pound towing capacity, 340-mile charge range and can reach speeds of 130 miles per hour. The truck is also made with an ultra-hard stainless-steel exoskeleton to reduce dents and damage along with shatter-resistant armor glass.
Not every encounter is as pleasant for Smith, who has become accustomed to the not-so-friendly interactions as well.
鈥淓very once in a while, there鈥檚 some big diesel truck driver that pretends he鈥檚 vomiting or flips me off or speeds up and tries to cut me off,鈥 Smith said.
The Cybertruck, which has garnered him far more attention than any other Tesla, has become a common photo op as well.
鈥淓very time we go anywhere, there鈥檚 at least one or two people that ask if they can take a selfie with it,鈥 Smith said. 鈥淚n the Haymarket, sometimes there will just be a line of people waiting to take pictures with it or ask me questions about it. It鈥檚 crazy. Kids really love it.鈥
There are nearly 10 Cybertrucks driving around Lincoln now, according to Smith.
![Cybertruck, 6.25](https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=150%2C99 150w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=200%2C132 200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=225%2C148 225w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=300%2C197 300w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=400%2C263 400w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=540%2C355 540w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=640%2C421 640w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=750%2C494 750w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=990%2C651 990w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=1035%2C681 1035w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=1200%2C790 1200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=1333%2C877 1333w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=1476%2C971 1476w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/30/4307e8d0-3337-11ef-a8f4-3b2c70219710/667b321f414bf.image.jpg?resize=1775%2C1168 2008w)
Cybertruck owner Joe Smith poses for a portrait Tuesday in Lincoln.
He was first given the option of purchasing Tesla鈥檚 first pickup truck in November 2019 during an unveiling event. For a refundable $100, Smith, along with 200,000 others, secured his place.
鈥淚 figured at the time, this is an incredibly weird-looking truck, but it鈥檚 $100, so I have the optionality to get it some day,鈥 Smith said.
It was a while before that day came. With production delays due to the COVID-19 pandemic, it wasn鈥檛 until last December that Smith was invited to make the big purchase.
鈥淚 didn鈥檛 pull the trigger right away because by that point, I鈥檇 like to assess if I really wanted this thing,鈥 Smith said.
While making his decision, a local friend followed through with purchasing the truck, allowing Smith and his wife to test drive it.
鈥淢y wife had driven it for about five minutes when she looked at me and said, 鈥楯oe, we gotta get this truck,鈥欌 Smith said.
![Cybertruck, 6.25](https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=150%2C100 150w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=200%2C133 200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=225%2C150 225w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=300%2C200 300w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=400%2C267 400w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=540%2C360 540w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=640%2C427 640w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=750%2C500 750w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=990%2C660 990w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=1035%2C690 1035w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=1200%2C800 1200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=1333%2C888 1333w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=1476%2C984 1476w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/3/75/3754695a-3337-11ef-90d6-238401f7754d/667b320b9b0eb.image.jpg?resize=1763%2C1175 2008w)
The trunk of Joe Smith's Cybertruck is seen on Tuesday in Lincoln.
The couple was instantly hooked on the practicality of the truck. After owning an SUV and a sedan, they wanted a truck bed for bikes, garden work and hauling purchases home from department stores.
Smith, who considers himself an eco-conscious person, purchased his first electric vehicle, a Chevy Volt, in 2012.
鈥淲e liked the idea of a zero-emissions car and the convenience again of never having to go to a gas station,鈥 Smith said. 鈥淲aking up in the morning with 300 miles of range, that鈥檚 just a convenience that once you get used to, you don鈥檛 want to give it up.鈥
In 2018, he purchased his first Tesla, a Model 3 compact car. Since then, his fondness for Tesla has grown for the instant torque response, performance priorities and full self-driving mode. The Cybertruck, Smith鈥檚 fifth Tesla, is his new day-to-day vehicle.
鈥淚t has become the only car that both me and my wife want to drive,鈥 Smith said. 鈥淥ur other cars are not unfun to drive, they鈥檙e just not as fun to drive.鈥
Generally, Smith has preferred driving sedans and smaller vehicles, and he鈥檚 never liked the idea of a traditional truck with low fuel economy.
![Cybertruck, 6.25](https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=150%2C107 150w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=200%2C143 200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=225%2C161 225w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=300%2C214 300w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=400%2C286 400w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=540%2C386 540w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=640%2C457 640w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=750%2C536 750w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=990%2C707 990w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=1035%2C739 1035w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=1200%2C857 1200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=1333%2C952 1333w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=1476%2C1054 1476w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/4/ed/4edc649c-3337-11ef-9e7f-53c579568b6f/667b32331bb73.image.jpg?resize=1703%2C1216 2008w)
Joe Smith's Cybertruck with the frunk (front trunk) opened is seen on Tuesday in Lincoln.
鈥淭hat鈥檚 the weird thing about the Cybertruck, it drives like a compact car just because of the four-wheel steering. You can maneuver in and out of pretty much anything,鈥 Smith said.
While driving at higher speeds outside of town, Smith said lane switching is barely noticeable.
鈥淵ou鈥檙e just kind of gliding from lanes,鈥 Smith said. 鈥淚t feels very confident in switching lanes in a way that no other car does.鈥
Smith said the only downside so far is the Cybertruck's five seats. His Tesla Model X featured three rows to easily fit his wife, two kids and two 100-pound dogs.
鈥淭hat鈥檚 probably my gripe is not having a place to put the dogs so we can all go somewhere together,鈥 Smith said.
Hertz Global Holdings' ambitious rollout of Tesla electric vehicles has been a defining move in their fleet expansion strategy, adding 20,000 EVs to their offerings. This bold step, constituting nearly a third of their EV inventory, has been a significant pivot point within the broader U.S. automotive landscape, which has seen a fourfold increase in EV sales from 2020 to 2023. However, the slowing growth of EV sales, now at 9% of the light-duty vehicle market, has prompted a shift towards hybrids. While the transition to electric vehicles has been heralded as the future of transportation, practical concerns over charging infrastructure have emerged. Many consumers wonder about the mileage and wear on these rented Teslas, as frequent users and hotel stays pose charging challenges. Meanwhile, the used EV market has experienced a downturn, with sales dropping by over 30%. Amidst these trends, Jeep and Ford have reported a significant uptick in hybrid sales, while luxury carmaker Aston Martin has withdrawn from the EV race. Hertz's bet on Tesla may offer buyers discounted electric options, but the broader implications for the auto industry and consumer preferences are still unfolding.
Why auto insurance premiums will continue rising in 2024
Why auto insurance premiums will continue rising in 2024
![Why auto insurance premiums will continue rising in 2024](https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/7/1f/71f8ed64-f335-595a-bec8-6ca227cf7776/663a517911ad2.image.png?resize=150%2C107 150w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/7/1f/71f8ed64-f335-595a-bec8-6ca227cf7776/663a517911ad2.image.png?resize=200%2C143 200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/7/1f/71f8ed64-f335-595a-bec8-6ca227cf7776/663a517911ad2.image.png?resize=225%2C160 225w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/7/1f/71f8ed64-f335-595a-bec8-6ca227cf7776/663a517911ad2.image.png?resize=300%2C214 300w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/7/1f/71f8ed64-f335-595a-bec8-6ca227cf7776/663a517911ad2.image.png?resize=400%2C285 400w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/7/1f/71f8ed64-f335-595a-bec8-6ca227cf7776/663a517911ad2.image.png?resize=540%2C385 540w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/7/1f/71f8ed64-f335-595a-bec8-6ca227cf7776/663a517911ad2.image.png?resize=640%2C456 640w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/7/1f/71f8ed64-f335-595a-bec8-6ca227cf7776/663a517911ad2.image.png?resize=750%2C535 750w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/7/1f/71f8ed64-f335-595a-bec8-6ca227cf7776/663a517911ad2.image.png?resize=990%2C706 990w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/7/1f/71f8ed64-f335-595a-bec8-6ca227cf7776/663a517911ad2.image.png?resize=1010%2C720 1035w)
Do you want the bad news or the worst news first? is not cruel and will gently let you know the truth.聽
Okay, the bad news first. The price of everything from groceries to furniture is going up. The worst news? Insuring your car to navigate this economic apocalypse just got significantly more expensive.
Full Coverage or Empty Wallet? 2024 Auto Insurance Increases Will Hit You Hard!
Full coverage costs $212 a month on average, while liability-only coverage costs $103 a month. That prices out to $2541 and $1238 a year, respectively. In 2023, the average price of full-coverage car insurance across the country went up by 24%.
The cost of car insurance depends on many things. These include the type of vehicle you drive, your driving record, and, in many places, your credit score.聽
, especially in states like Michigan, Connecticut, and Florida. But rates for all types of car insurance are going up at an alarming rate. This is mostly because of things like the cost of auto parts and the effects of climate change.
Auto Insurance Premiums Have Been on a Joyride to Hell
According to the , auto insurance premiums in 2024 have increased by a whopping 20.6% year-over-year. That's right, your car insurance is now more expensive than that regrettable avocado toast you splurged on last week.
This was the biggest increase since December 1976, when rates went up 22.4% from the previous year.
According to the BLS, the cost of car insurance went up 17.4% each year in 2023. This was the biggest annual increase since 1976, when it went up 28.7%.
A rise in accidents, type of accidents, and location 鈥 factors all working together to make costs go up 鈥 are combining to give many American drivers insurance sticker shock.
A lot of people stayed home during the height of the pandemic, but the number of deaths on the roads rose by 10.5% , reaching their highest level since 2005. The NHTSA said it was the biggest rise in deaths it had ever seen. .
Top 10 States Where Rates are the Highest
![Top 10 States Where Rates are the Highest](https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/6/d6/6d6ac5a4-d4b8-5a1e-96f8-d2b66393fd15/663a517f31d07.image.png?resize=150%2C146 150w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/6/d6/6d6ac5a4-d4b8-5a1e-96f8-d2b66393fd15/663a517f31d07.image.png?resize=200%2C195 200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/6/d6/6d6ac5a4-d4b8-5a1e-96f8-d2b66393fd15/663a517f31d07.image.png?resize=225%2C219 225w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/6/d6/6d6ac5a4-d4b8-5a1e-96f8-d2b66393fd15/663a517f31d07.image.png?resize=300%2C292 300w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/6/d6/6d6ac5a4-d4b8-5a1e-96f8-d2b66393fd15/663a517f31d07.image.png?resize=400%2C390 400w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/6/d6/6d6ac5a4-d4b8-5a1e-96f8-d2b66393fd15/663a517f31d07.image.png?resize=540%2C526 540w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/6/d6/6d6ac5a4-d4b8-5a1e-96f8-d2b66393fd15/663a517f31d07.image.png?resize=640%2C624 640w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/6/d6/6d6ac5a4-d4b8-5a1e-96f8-d2b66393fd15/663a517f31d07.image.png?resize=747%2C728 750w)
From population density to car thefts, take a look at the reasons why rates are the highest in these states.
How Long Will These Rates Stick Around?
![How Long Will These Rates Stick Around?](https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/b/a5/ba56fa80-6b26-56f0-b296-01ff33a7aa7a/663a53e20625e.image.png?resize=150%2C92 150w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/b/a5/ba56fa80-6b26-56f0-b296-01ff33a7aa7a/663a53e20625e.image.png?resize=200%2C123 200w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/b/a5/ba56fa80-6b26-56f0-b296-01ff33a7aa7a/663a53e20625e.image.png?resize=225%2C138 225w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/b/a5/ba56fa80-6b26-56f0-b296-01ff33a7aa7a/663a53e20625e.image.png?resize=300%2C184 300w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/b/a5/ba56fa80-6b26-56f0-b296-01ff33a7aa7a/663a53e20625e.image.png?resize=400%2C245 400w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/b/a5/ba56fa80-6b26-56f0-b296-01ff33a7aa7a/663a53e20625e.image.png?resize=540%2C331 540w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/b/a5/ba56fa80-6b26-56f0-b296-01ff33a7aa7a/663a53e20625e.image.png?resize=640%2C392 640w, https://bloximages.chicago2.vip.townnews.com/journalstar.com/content/tncms/assets/v3/editorial/b/a5/ba56fa80-6b26-56f0-b296-01ff33a7aa7a/663a53e20625e.image.png?resize=746%2C457 750w)
If you are living in one of the states above, you can compare and see how much auto insurance premiums increased in 2023.
Calmer Seas Ahead: Auto Insurance Rates Stabilizing
After a turbulent year, auto insurance premiums are now stabilizing, with less substantial increases anticipated in the coming months.
Insurers endured high loss ratios for the majority of 2023, which will likely be reflected in additional rate hikes. This is primarily attributable to the soaring cost of auto parts and the growing volume and severity of claims.
The insurance industry persisted under the strain of inflationary pressures, labor shortages, and supply chain deceleration, which originated during the COVID-19 pandemic into 2023. However, losses for personal auto insurers have decelerated as the impact of rate increases begins to outweigh loss trends. As a result, drivers may anticipate a degree of industry stabilization in the latter part of 2024.
Increasing Maintenance and Repair Costs = Lower Insurer Profits
Since 2022, the consumer price index for car maintenance and repair from the Bureau of Labor Statistics has experienced significant double-digit increases. Higher expenses incurred at the auto shop are transferred to insurers, who then adjust their rates to accommodate the rising costs of claims.
Insurers are also bearing the costs of increasingly frequent and severe accidents. According to the National Highway Traffic Safety Administration (NHTSA), there was a significant increase in traffic fatalities during the COVID-19 shutdowns. In 2020, the number of fatalities rose by 7.3%, and in 2021, it increased by 10.1%.聽
With the rise of advanced automotive technology, the cost and complexity of car repairs have also increased. The cost of replacing a windshield can be quite high, especially in vehicles equipped with advanced features like rain-sensing wipers, driver assistance systems, and adaptive cruise control. The typically ranges from $300 to $600.
Electric vehicles (EVs) do have higher repair costs. In certain models, Tesla has ingeniously integrated batteries as a structural component of their cars rather than a mere replaceable part. This strategic move has allowed Tesla, the leading manufacturer of electric vehicles in the U.S., to solidify its position in the market. If a minor accident occurs, it may be necessary to replace the entire battery, which can result in a significant expense ranging from $5,000 to $20,000 for the replacement part.
Tesla: Crash Proof Cars or Crash Test Dummy Insurance?
In a January 2023 investor call, Tesla CEO Elon Musk unveiled his intentions to revamp the design and reduce the expenses associated with repairing a Tesla after a collision. In 2019, , providing customers with the opportunity to secure more affordable rates compared to conventional insurance providers.
Nevertheless, numerous Tesla Insurance policyholders have expressed frustration over extended wait times for compensation. The automaker is also dealing with class-action lawsuits that claim Tesla sensors generate inaccurate collision warnings, leading to higher insurance premiums.
Pandemic Souvenir 鈥 Expensive Cars That Nobody Can Afford
The auto manufacturing industry is facing significant challenges due to supply chain disruptions and labor shortages caused by the COVID-19 pandemic. As a result, there is a decline in inventory and a noticeable increase in prices for new vehicles. According to Kelley Blue Book, the average transaction price for new cars has increased by about 23% since November 2020, now reaching over $48,000.
On the other hand, the prices of new vehicles have remained steady from one year to the next, thanks to the favorable market conditions for car buyers. Used vehicle prices also experienced a significant increase but have since decreased by 3% since October 2023, with an average list price of $26,533, according to KBB data. However, the inventory of used vehicles, particularly the ones that are most affordable, continues to be limited.
Fire, Flood, Fury 鈥 Climate Change Makes Insurance Companies Weep
Weather events are increasingly impacting insurer losses. During the first half of 2023, the U.S. experienced significant losses due to severe convective storms, resulting in insured damages amounting to a minimum of $29 billion].
In 2023, there were insurance industry crises in several states that are particularly vulnerable to climate catastrophes, such as Florida, California, and Louisiana. In 2023, the United States witnessed a total of , as per the latest data from the National Oceanic and Atmospheric Administration (NOAA) as of Dec. 8.
Due to the expensive claims related to climate change, major insurers are reducing coverage, not renewing policies, and stopping the sale of new homes and auto policies in high-risk areas. With the rise in the frequency of severe weather events, policyholders may experience a decrease in coverage options, potentially leading to higher rates.
A Roadmap (Maybe)
A significant majority of drivers experienced multiple premium increases in 2023, resulting in a substantial rise in the average annual rate for full coverage to $2,019. Several factors came together to cause a significant increase in rates, such as escalating repair costs, shortages in labor, higher prices for vehicles, and climate disasters.
In the future, car insurance pricing may be influenced by severe weather events and the expensive repairs associated with high-tech and electric vehicles.
It is projected that car insurance rates will experience a further increase in 2024. If you're looking to reduce your car insurance expenses in 2024, there are several choices available. These include raising your deductibles, lowering your coverage limits, and obtaining quotes from multiple insurers to secure a more favorable rate.
Policyholders may inquire with their insurance companies to see if they are eligible for any potential discounts. Typical discounts encompass savings for vehicle safety features, defensive driving courses, combining home and auto insurance, and establishing automatic payments.
Bottom line
- As a result of record losses incurred by insurers due to the escalating cost of repairs, climate calamities, and severe car accidents, auto insurance premiums increased by an alarming 24% in 2023.
- Recent estimates indicate that auto insurance premiums will increase by 7% in 2024, which is nearly double the median annual increase.
- Annually, a full-coverage policy costs an average of $2,019 at the national level, which is equivalent to 2.6% of the median household income. The national average cost of state-mandated liability insurance increased to $1,154.
- In 2023, average wage growth was 638% lower than the increase in auto insurance premiums.聽
- Increasing deductibles and decreasing coverage limits are the most common cost-cutting measures among motorists. 45%, however, stated that they had not implemented any measures to decrease their premiums.
- The average annual premium for a full-coverage policy for New York motorists is $3,374, the highest in the nation.
was produced by and reviewed and distributed by Stacker Media.
Why auto insurance premiums will continue rising in 2024
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