US auto insurance costs surge - report

US auto insurance costs surge - report | Insurance Business America

US auto insurance costs surge - report

Auto insurance costs in the US increased in 2021 from 2020, according to a new report from insurance comparison platform Insurify.

In its second annual “Insuring the American Driver” report, Insurify analyzed more than 40 million auto insurance quotes across America to uncover recent trends in the industry and driving behavior. The report also looked into how the pandemic affected each of these areas.

The report noted that auto insurance prices increased 12% from 2020 to 2021. The average American driver pays $1,633 a year for coverage; Insurify suggests that the price will rise an additional 5% to just over $1,700 in 2022.

Insurify also took a look at current rates of reckless and aggressive driving behavior, which the insurance comparison site noted had increased during the COVID-19 pandemic. Driving-related fatalities per mile driven increased 26% in the period between March and May 2021, compared to the same period in 2019, and just 3% lower than the increases in 2020.

It has been suggested by the report that the increase in aggressive driving cases has persisted even after COVID restrictions have been lifted.

“With inflation over 5%, driving rates returning to pre-pandemic levels, and rising collisions, there are many factors leading to increased auto insurance prices,” said Insurify head of research and content Kacie Saxer-Taulbee. “Even when you set aside economic factors, drivers are expressing a distinct difference in their experience on the roads in 2021, with 38% reporting driving more frequently and 44% witnessing more aggressive driving.”

Other findings of the report included:

  • Aggressive drivers on average pay 25% more for auto insurance compared to those with clean records.
  • 44% of drivers witnessed more aggressive driving on the roads in 2021
  • 38% of drivers reported that they are driving more in 2021 than in 2020
  • 41% reported an increase in their car insurance premiums year over year