According to Consumer Price Index data, auto insurance rates have increased by 21% compared to last year. Experts attribute this rise to a combination of factors including cyclical structures in the insurance industry, supply chain issues, rising vehicle repair costs, social inflation, and changing driving behaviors. Significant losses experienced by insurance companies in recent years and the subsequent need to balance these losses by raising prices is a major factor. Additionally, increases have also been observed in other types of insurance such as home insurance and workers’ compensation insurance. Economic uncertainties and the frequency of natural disasters are among the primary reasons for these increases. Consumers looking to reduce insurance costs can compare policies to find the best rates and take advantage of available discounts.
Source and Details: Bryant News