Auto Insurance Rates Increasing?
According to insurance shopping website The Zebra, auto insurance rates have increased significantly in recent years – by 20% since 2011. According to the Insurance Information Institute, rates have risen 15% in the past two years, during which time insurance company profits have declined. Some of these increases are likely due to weather events, such as the several hurricanes in 2016. Other factors might include increased severity of crashes and more distracted drivers on the road. Interestingly, The Zebra also found that insurance rates have not appreciably decreased for participants in telematics programs. Consumer advocates complain that the increased costs, and insurers’ use of big data, disproportionately affect lower-income consumers.
