A recently released insurance trends report from Insurify looked at how inflation has affected auto insurance premiums by looking at more than 40 million of their consumer quotes.
Insurify noted that weather patterns, crime rates and population density contribute to regional variation in auto insurance rates, according to the Insurance Information Institute, and state-level legislation does as well through different driver attributes that insurers use to set rates and how much minimum coverage drivers are required to have. to wear. Other factors that can affect the cost of the insurance premium include car type, marital status, driving habits, home ownership, age, gender, education, and credit score.
According to Insurify, Michigan, Louisiana and New York pay the highest premiums, while Hawaii, North Carolina and Wyoming pay the lowest. They also found that city drivers pay an average of 15% more for auto insurance.
To curb the rising cost of auto insurance, more than 1,200 respondents to the Insurify survey said they are considering driving less (65%), purchasing an electric vehicle (EV) or hybrid (30%), changing insurance companies change (30%), move closer to public transportation or walking areas (16%), or drop insurance (10%).
Bart Mazurek, vice president of consulting and services for CCC Intelligent Solutions, said last week at this year’s MSO symposium in Las Vegas that traffic volumes are returning to pre-pandemic levels, but fewer accidents are happening due to a reduction in traffic congestion, mainly caused by remote working.
On insurance, Insurify CEO Snejina Zacharia told Yahoo Finance, “As we saw the economy accelerate and demand recover from the pandemic, Americans’ total cost of living, including insurance, rose in 2022 due to accumulated pandemic-related disruptions and increased inflation.”
An August survey of 2,000 drivers by US News & World Report, conducted in part to understand how inflation and the COVID-19 pandemic have affected consumers, found that 49% are driving less because of the pandemic and 61% because of a higher gas mileage prices.
AAA reported this in September the average annual cost of owning and operating a new vehicle has risen to $10,728, or $894 per month, which is $1,000 more than in 2021. Used vehicle sales prices have skyrocketed in recent years and the average age of vehicles on the road has also increased – all factors driven by the pandemic and inflation. According to AAA, gas prices are the main factor driving up this year’s average.
Due to the current economic climate, Insurify noted in its findings that “it is difficult to predict which companies will increase their rates and when.”
“We encourage drivers to compare quotes from at least four to five companies before choosing a policy. With inflation so high this year, drivers can also compare quotes about every six months to make sure their current policy and premium best suit their needs. Keep in mind that some insurers may offer lower rates
premiums to customers who have been with one company for more than a year.”
Looking for discounts from carriers by, for example, bundling home and insurance policies and AAA membership can also be helpful in reducing premiums with just one discount that could potentially save 15% off annual auto insurance premiums, according to Insurify.
“A third of drivers don’t take advantage of discounts, including 16% who don’t take advantage of discounts, even if they know they qualify for one or more,” Insurify said. “Finding a policy with one or more discounts can be an easy way for motorists to save on car insurance.”
More savings tips for consumers can be found at the end of the findings document, which is available here.
According to Betsy Stella, Insurify’s Vice President of Insurance Partnerships, the “current volatility” of the US insurance market is not likely to stabilize until mid-2023. “Based on our extensive research and feedback from over 100 carriers, the general consensus is that it will take eight to 12 months [from fall 2022] before the market stabilizes,” she said in a statement. “Some think it could take several years for a soft market to return.”
Featured image credit: Mohamad Faizal Bin Ramli/iStock
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