WHY AUTO INSURANCE COSTS ARE RISING AND WHAT CONSUMERS CAN DO ABOUT IT
CHICAGO, April 10, 2024 /PRNewswire/ --
BACKGROUND:
Across the country, auto insurance premiums are on the rise and many drivers are wondering why their rates have increased.
Experience the full interactive Multichannel News Release here: https://www.multivu.com/players/English/9219951-american-property-casualty-insurance-association-auto-insurance-costs/
The answer is for the simple reason that the cost of the things auto insurance pays for has been rising faster than premiums. This is exacerbated by inflation trends, legal system abuse, and in some states, regulatory uncertainty.
In 2022, auto claim losses and expenses spiked to more than $1.12 for every $1 in premium.
Some of the key contributors to rising costs include cumulative years of record-high inflation that have greatly increased the cost of repairing and replacing cars. Over the last five years, the cost of car parts and used cars and trucks increased nearly 40 percent and the cost of vehicle repairs increased by more than 20 percent. Other key cost drivers include higher numbers of car thefts and more complex and expensive repairs due to the increasing sophistication of the technology in today's vehicles.
Dangerous driving behaviors are also having an impact on costs. As daily driving patterns and traffic volumes rebound from pandemic lows, traffic fatalities remain alarmingly high.
Fatal crashes involving risky behaviors like impaired driving and speeding remain an epidemic on our roadways. Data from Cambridge Mobile Telematics, 2023 Distracted Driving Report, found that "distracted driving has increased 23% since 2020, resulting in an additional 420,000 crashes and 1,000 fatalities.
All indicators suggest elevated auto repair and replacement costs will stretch well into 2024 and potentially beyond.
Insurers are urging drivers to reduce their risk by avoiding driving behaviors like distracted driving, speeding, and impaired driving that may result in a crash. Insurers are also advocating for better infrastructure, including reliable supply chains for critical auto parts and safer roads, which should result in fewer crashes, and controlling claims costs to help keep insurance premiums affordable for consumers. By working in partnership with consumers, insurers are committed to giving drivers access to tools and resources, such as telematics or usage-based insurance products, that lower the price of auto insurance and make our roads safer.
5 Consumer Tips to Lower Your Auto Insurance Premiums:
- Contact your insurance company or agent for a policy review.
- Shop around with other insurers to see if there is a better match for coverage and cost.
- Increase your deductible and lower non-essential coverage like glass, rental car, and roadside service.
- If you're driving less, consider usage-based insurance.
- Ask your insurer if they have billing method discounts or other discount programs
To learn more about what's driving auto insurance costs and ways you can save money, visit: www.apci.org/costdrivers/
MORE ABOUT David A. Sampson:
David A. Sampson is the president and CEO of the American Property Casualty Insurance Association (APCIA). He has been in this role since 2007.
APCIA is the primary national trade association for home, auto, and business insurers, with a legacy dating back 150 years. APCIA members represent companies of all sizes, structures, and regions--in the U.S. and across the globe. APCIA's mission is to advance private competitive insurance markets to protect consumers, businesses, and communities. APCIA supports a strong, state-based regulatory system and proactive U.S. engagement in international regulatory discussions, to facilitate market growth and stability through proactive education, thought leadership, and advocacy.
Sampson has led the industry through some of the most consequential insurance issues of the last decade, including the COVID-19 response, preserving state statutory accounting during once-in-a-generation tax reform, and ensuring that the Dodd-Frank Act recognized the strong consumer protections already provided by state insurance regulators and the guaranty fund system.
As a respected industry voice and proponent of private markets, Sampson is a frequent keynote speaker at industry and business events. In addition, he is a leading spokesperson for the property casualty industry in the media.
Sampson also is the president of the Independent Statistical Service, Inc. (ISS), a wholly owned subsidiary of APCIA and one of the industry's largest and most trusted statistical agents. He serves on the Board of Directors of the Insurance Institute for Highway Safety as well as on the Biden-Harris Administration's Wildland Fire Mitigation and Management Commission.
Before joining the industry, Sampson served in the George W. Bush Administration in two presidential-appointed and Senate-confirmed positions. From 2005 to 2007, he served as the Deputy Secretary of the U.S. Department of Commerce and was a member of President Bush's Management Council.
Previously, Sampson served in the Governor George W. Bush Administration as Chair of the Texas Council on Workforce and Economic Competitiveness and Vice Chair of the Texas Strategic Economic Development Planning Commission. He also led the Arlington, Texas Chamber of Commerce as the President and CEO.
Sampson graduated from Lipscomb University, where he serves as a distinguished professor of public policy. He earned his doctorate at Abilene Christian University. He completed the Program for Senior Executives at Harvard University's John F. Kennedy School of Government in 1999. He and his wife Karen have two grown sons. Sampson serves on the vestry of St. Paul's Episcopal Church in Gainesville, Texas and is an executive committee member of the Traditional Cowboy Arts Association.
Produced for: American Property Casualty Insurance Association (APCIA)
SOURCE American Property Casualty Insurance Association
![](https://rt.prnewswire.com/rt.gif?NewsItemId=AQ70191&Transmission_Id=202404101024PR_NEWS_USPR_____AQ70191&DateId=20240410)
Share this article