Allstate Insurance CEO Reveals Hidden Cause of Rising Auto Insurance Rates

Allstate Insurance - A woman looking surprised - auto rates increase

In a recent interview with CNBC, Tom Wilson, CEO of Allstate Insurance, shed light on the underlying reasons for the spike in auto insurance rates. He pointed to a crucial factor that has often flown under the radar—the dramatic increase in used car prices over the past few years. This revelation connects the dots between the surge in vehicle costs and the consequential rise in insurance premiums. The Surge in Used Car Prices “The price of used cars skyrocketed by 60% between 2020 and 2022,” noted Wilson. This substantial increase…

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Are auto insurance companies secretly spying on drivers with their phones?

Auto Insurance - Spying

Common apps may be feeding insurers more info than motorists think Auto insurance companies have been offering discounts to drivers who use their apps to track their habits behind the wheel and prove that they are safe while they’re on the road. Other apps may also be feeding information to insurers According to a recent Business Insider report, auto insurance companies are learning about drivers’ habits even if those motorists haven’t signed up to be tracked.  The report stated that there is a slew of commonly used applications installed on…

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Auto insurance shopping increases as high rates send consumers elsewhere

Auto insurance - Shopping around online

Drivers are looking for new ways to make their coverage affordable, including leaving current insurers According to a new report from JD Power and TransUnion, for the first quarter of 2024, drivers were increasingly shopping for new auto insurance policies in the hopes of saving money on their monthly premiums. These drivers felt there were no more ways to save on existing policies Consumers started comparison shopping for new auto insurance policies because they didn’t see any new ways to be able to apply discounts to their existing coverage, said…

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Tesla Insurance Hires Former Member of GEICO Management to Bridge the Gap

Tesla Insurance - Tesla Logo

Tesla, renowned for revolutionizing the automotive industry with its electric vehicles, ventured into uncharted territory back in 2019, where CEO, Elon Musk promised customers “vastly better” service compared to the competition. With the recent hire of Allen Laben, a seasoned executive from GEICO, Tesla aims to tackle the high insurance costs that have burdened its vehicle owners. But can a carmaker successfully navigate the complexities of the insurance industry, and what does this mean for consumers? The Challenge of Transitioning Industries Diving into the insurance sector represents a significant shift…

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Insurance agents that want to succeed must focus on digital

insurance agents shouldnt ignore online customers

A recent J.D. Power survey showed that consumers want to shop and use services online As auto premiums skyrocket and consumers increasingly shop for better prices than what their current insurance companies have to offer, digital channels are playing a vital role in the overall consumer experience, said a recent J.D. Power survey report. People are turning to their laptops and phones for information Beyond informing themselves, consumers also expect insurance agents to let them obtain quotes and serve themselves online. This has become a critical way of doing business…

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