Commercial Auto Insurance Premiums Expected to Rise Throughout 2022
Dormant insurers as well as new insurers have become more active, pushing the auto insurance industry into a massive shift. This shift will usher in new products, services, and a newer business mindset. Conversely, the industry has seen increased premiums for over four decades. Despite the increase, AM Best reported over $22 billion in underwriting losses. The spike in premiums is also likely to continue due to litigation trends and driver shortages caused by hiring restrictions.
Auto insurance companies around the country are reporting rate modifications, many of which are rate increases. The S&P Global Market Intelligence data shows that the average rate increase filing is roughly 4.9%. Car insurance premiums currently average $1,771 per year for full coverage, but this will rise to $1,858 per year in the near future. Since unsafe driving habits and road accidents contribute to higher premiums, insurers require adequate prior protection against claims that can’t just come out-of-pocket without help.
