2022 Outlook for Auto Insurance
Updated: Feb 15, 2022
You have seen on the news or social media the impacts of the past almost two years have had on the auto industry. The lack of cars and parts does not affect the dealer down the street. It also impacts your insurance company. Think about it, when someone has an accident, their car will need to be repaired or replaced if the vehicle is totaled. From 2020 to 2021, the cost of an average auto insurance claim has gone up 20%! I will say that again. The average claim has gone up 20%. To put that into perspective, a client of mine last year had an accident, and the damage to his truck was $14,000. If the claim happened this year, the claim would be almost $17,000. Now you're saying, Christian, why does this matter? I didn't have a claim. Well, you may not have, but over the last year, fatal accidents have gone up over 18% over the previous year. This means that in 2022 all insurance companies will be taking rate increases. Right now, the average is about 6%. The best way to mitigate this upcoming increase is telematics. Check back next week for a blog post on telematics!