INDIANAPOLIS (WISH) — If your automobile insurance rates have gone up, you’re not alone. Premiums are within the rise, and the COVID-19 pandemic is partially to blame.
“You may remember that back during COVID-19 in 2020, auto insurers lowered rates and returned around 14 billion dollars nationwide to their policy holders because fewer people were driving,” Scott Holeman, spokesperson for the Insurance Information Institute, which is a non revenue that educates customers about insurance, stated.
Now, the precise reverse is going on. There are extra drivers on the street, and which means extra accidents. Because of a labor scarcity, automobile repairs take longer.
“We have more and more cars with sophisticated technology, and those tech savvy cars are designed to keep people safe, but with that technology is a higher expense,” Holeman stated.
A components scarcity, inflation, and provide chain issues are additionally to blame.
Lawsuits and dangerous driver habits are additionally driving up premiums. Holeman says it’s arduous to predict when rates will return down.
“We continue to see that people are driving more dangerously, and so a lot of it is going to depend on driver behavior,” he stated.
Indiana is likely one of the cheaper states for auto insurance. Holeman provides that if you’re nonetheless working from dwelling, you could give you the option to negotiate a decrease insurance premium. Where you park and the way a lot you drive may additionally impression your rates.
