Although projections range wildly, from an increase of less than 1% to more than 5%, most insurance industry watchers are positive personal auto rates will increase during the coming year.
The number of miles traveled by U.S. drivers during the first year of the pandemic dropped14%, resulting in a decrease of around 4% for auto insurance premiums in 2020, the Federal Highway Administration reported. However, drivers are starting to return to the roads and auto insurers have taken note.
In addition to an increase in traffic, drivers picked up some dangerous habits during the pandemic as the National Highway Traffic Safety Administration (NHTSA) reported an increase in instances of distracted motorists, speeding and impaired driving. The NHTSA estimates 20,160 people died in motor vehicle accidents in the first half of 2021, which is an 18.4% jump over the same period in 2020.
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
