Auto Insurers Gearing To Raise Rates in 2022

Just when we thought high inflation was done messing with the automotive industry, news came fast that insurers have too gotten onboard with price increases. As of now, a vast majority of U.S. insurers have filed to raise rates in 2022. Some have already begun the process in Q4 of 2021. Therefore, you’ll want to read on to see what changes are in store.

Insurers plan to raise rates in 2022

Industry experts have reported that the supply chain disruption is a leading contributor to the impending increase in premiums. Though we’d like to forget this ongoing issue continues to terror the automotive market, now it’s even affecting the way we insure our vehicles. To add to the mix, the surge in negligent driving in the last few years has lead to an overabundance of claims filed. As a result, insurance providers are having to reconsider liability claims and at what cost coverage is owed.

Byproducts of the pandemic

As the world isolated, the frequency of collisions seemingly reduced. However, this year there was a 18% spike in deadly crashes. As roads returned to normal and people began socializing again, the dreaded traffic we so didn’t miss made a quick comeback. Essentially, the more people on the road, traveling, and making up for lost time, the greater risk for collision.

Another factor that will heavily raise rates in 2022 is the current supply chain issues. Because supplies are low, mostly due to the semiconductor shortage, the cost of auto parts has subsequently increased as well. On top of that, longer repair times are now on the table. All-round, the consequences of the pandemic have a strong hold over every aspect of driving nowadays.

What type of coverage will require higher rates?

Areas that will permit higher coverage include bodily injury, property damage, and uninsured motorists. These causes typically warrant greater protection due their frequency throughout the U.S. Some states already require uninsured motorists protection for every insured driver. A few examples are New Jersey, New York, North Carolina, Virginia, and Illinois. Moreover, most insurance providers push for this level of coverage whether it’s required or not. This means, the plight to raise rates in 2022 will likely affect the bare minimum to the most insured drivers out on the road.

What auto insurers will raise rates in 2022?

The auto insurers who will raise rates in 2022 include Geico, Allstate, and Travelers. However, now is just as good as any to buckle up for the higher premiums ahead. It’s safe to say that just about every insurance company will adjust to this new reality. Remember that insurance rates largely depend on state legislation and personal driving history, so it’s hard to say how much your rates will increase. The best plan of action is to stay up-to-date on all insurance changes, and possibly shop around for the 2022 year.