Car insurance rates rise, COVID-19 to blame – WISH-TV | Indianapolis News | Indiana Weather forecast
INDIANAPOLIS (WISH) — If your auto insurance rates have gone up, you’re not alone. Premiums are rising and the COVID-19 pandemic is partly to blame.
“You may remember that during COVID-19 in 2020 auto insurers lowered their rates and returned about $14 billion nationwide to their policyholders because fewer people were driving,” Scott Holeman said. , spokesperson for the Insurance Information Institute, which is a not-for-profit organization. which educates consumers about insurance, said.
Now, the exact opposite is happening. There are more drivers on the road, and that means more accidents. Due to a labor shortage, auto repairs are taking longer.
“We have more and more cars with sophisticated technology, and these state-of-the-art cars are designed to keep people safe, but with this technology the expense is higher,” Holeman said.
A shortage of parts, inflation and supply chain issues are also to blame.
Lawsuits and bad driver behavior also drive up premiums. Holeman says it’s hard to predict when rates will come back down.
“We continue to see people driving more dangerously, so a lot of that will come down to driver behavior,” he said.
Indiana is one of the cheapest states for car insurance. Holeman adds that if you’re still working from home, you might be able to negotiate a lower insurance premium. Where you park and how long you travel can also impact your rates.