Why are auto insurance premiums going up so much when I haven’t had a claim?

There are several reasons insurance costs rise, and it seems we are now in a perfect storm. 

The National Highway Traffic Safety Administration, a division of the Department of Transportation, estimates that 42,915 people died in motor vehicle traffic crashes in 2021, a 10.5% increase from the 38,824 fatalities in 2020. The deaths include pedestrians, cyclists and others who may have died during a crash. The larger payout from litigation in these claims continues upward pressure on insurance company coffers. See the full article here- NHTSA Road Fatalities.

Parts aren’t readily available due to ongoing supply chain issues, so repair times take longer. Fewer qualified technicians mean delays and more rental costs. US Bureau of Labor Statistics Towing costs are increasing as well. Lawsuits cause higher payouts, with some claims exceeding a million dollars. 

Cars just cost more to repair than ever before. You may be involved with a vehicle with a value that exceeds $100,000, so repairs can be higher than you may think. The current inflation rate is at lifetime highs for most of us, and its effects touch everything from new cars to used cars and the parts needed to repair them when there is damage. Couple that with Healthcare Inflation, which is over 9%, and the resulting costs appear in every auto-related claim. 

Of course, changing companies for potential savings may help, but work with your insurance advisor to find longer-term solutions and stability for the insurance protection you need. Ask about available discounts and consider Telematics if you are not already using this feature to personalize your insurance cost.