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. Hence, as per Bankrate, nearly 2 million policyholders will further experience an average rate increase of about 14 percent.
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.
