US-based virtual insurance agent Insurify has reported that auto insurance costs have risen by 12% between 2020 and 2021, and are expected to continue to rise into 2022.
Insurify released the concerning figures in its second annual ‘Insuring the American Driver’ report. According to the report, the average American driver is now paying $1,633 a year for coverage – a price the report projects will rise 5% to just over $1,700 in 2022.
Insurify’s research team analysed over 40 million car insurance quotes across the US and explored trends in driving behaviours that could be influencing costs.
Driving-related fatalities per mile driven increase 26% between March and May 2021 compared to the same period in 2019, a level only 3% lower than the highs seen in 2020.
Insurify said reckless and aggressive driving behaviours surged during the Covid-19 pandemic, yet this unsettling trend continues to persist beyond the lifting of restrictions and lockdowns.
Kacie Saxer-Taulbee, head of research and content at Insurify, said, “With inflation over 5%, driving rates returning to pre-pandemic levels, and rising collisions, there are many factors leading to increased auto insurance prices.”
Insurify’s report also showed insights into self-reported driver behaviour from a survey of over 1,000 drivers. Following the lifting of restrictions, 38% of drivers said they are driving more than in 2020, and 44% of drivers reported that they witnessed more aggressive driving on the roads. 41% reported an increase in their car insurance premiums year-on-year.
It is not out of the question that these elevated levels of reckless driving behaviour and fatality rates may be contributing to the surge in auto insurance rates, Insurify said. On average, aggressive drivers pay 25% more for car insurance compared to a policyholder with a clean record.
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