The latest study shows that US auto insurance costs will increase 12% by 2022. This is due to several factors, including a return to pre-pandemic driving levels, a supply chain disruption, and chip shortages. While these factors aren’t necessarily directly […]
The latest study shows that US auto insurance costs will increase 12% by 2022. This is due to several factors, including a return to pre-pandemic driving levels, a supply chain disruption, and chip shortages. While these factors aren’t necessarily directly related to the auto insurance market, they do affect premiums. While the current price increase was smaller than the four-month average during the first half of this year, the overall rise in prices is still significant.
The latest report from the U.S. Bureau of Labor Statistics indicates that auto insurance costs are on the rise across the nation. Though auto insurers are increasing premiums, the increase will be less than the rise in rates in 2017. Insurify’s data analysis found that consumers are increasingly reluctant to make claims after they’ve been in an accident. The study also suggests that more people are opting to drive less and use mass transit.
The rising auto insurance rates could be attributed to an increase in reckless driving and other factors, including severe shortages of cars and a lack of drivers with clean records. As the number of Americans with a clean record rises, auto insurance companies are raising premiums to keep up with the demand. However, the increased premiums may also lead to lower car prices, especially in areas where drivers have low-traffic volumes. These factors may cause higher premiums, but the rise will not be felt until next year.
Another factor contributing to the US auto insurance cost surge is reckless driving. While drivers with a clean driving record tend to pay less than those with a poor driving record, they are paying a higher rate than drivers with a clean driving record. According to the Insuring the American Driver Report, aggressive drivers will pay up to 25% more for auto insurance than those with a clean driving record. The rising cost of auto repair is also contributing to the increase in premiums.
While auto insurance rates are declining, they are likely to increase by 12% in 2020. The price increase is largely due to higher premiums for drivers who drive less frequently. Insurify’s analysis found that the cost of auto insurance coverage increased by 12% in 2020, and it predicts that prices will rise by 5% in 2022, as well. The report noted that despite the recent increase in the consumer price index, it will not affect the average American driver.
The rising cost of auto insurance is likely due to a number of factors. Most of these factors are related to reckless driving. As a result, drivers with a poor driving history are more likely to be involved in accidents and file claims. Insurify also found that people with a clean driving record will pay an average of 25% more for their coverage than those with a poor driving record. So, while it is difficult to predict whether the increase in costs will affect consumer costs, it is likely that these factors will affect the price of auto insurance.