State Farm aims to raise California auto insurance rates by $264 million

Auto insurance rates - Cash

The insurer is now catching up to other companies in raising their rates to pre-pandemic levels. Drivers in California who have been enjoying lower auto insurance rates than they were paying before the pandemic are likely to be losing that price advantage in the near future. The insurer will be returning the premiums it charges back up from the lows they hit after 2020. As motorists have stopped sheltering in place and are back on the roads, and the majority of people who had been working remotely are now headed…

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Car insurance rose by at least 25 percent last year in three US states

Car insurance - Rise in cost 25 percent

American drivers are braced for more increases in the premiums they’re paying on their auto policy. Across the US, there were three states that experience car insurance price increases by 25 percent last year, and experts are cautioning American motorists that the premiums are expected to continue rising. As much as auto premiums rose last year, 2023 is likely to see policies getting more expensive. Interest rate increases, inflation, the volatility of gas prices, and a spectrum of other causes have sent car insurance rates skyward in the last year.…

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LexisNexis US Auto Insurance Trends reveals pandemic’s impact

Auto insurance trends - Cars with break lights

The market was affected by dangerous driving increases, shopping volatility, fewer claims and policy renewal delays. LexisNexis Risk Solutions recently released its 2021 US Auto Insurance Trends report, which examined a spectrum of data revealing the directions certain activities are taking in this market. The report helps insurance carriers to better understand their evolving landscapes. In the 2021 US Auto Insurance Trends report, there was an analysis of the 2020 data, which provided insight into the impact of the COVID-19 pandemic on this industry. This included measures of change in…

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A new mode of transport is on the horizon between LA and Vegas

Could high-speed rail finally reach the Nevada desert?

The auto insurance industry will be awaiting the potential after-effects of a new high-speed rail link between Los Angeles and Las Vegas that could drastically cut the number of tourists requiring temporary auto insurance on their vacations. The $5 billion Virgin Trains-Brightline project has been given the green light following the approval of a private bond worth $600 million to enable construction to begin. The line, which will transport passengers from LA to ‘Sin City’ at up to 200mph, could revolutionize the way tourists travel internally to and from Las…

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Auto insurance will be unrecognizable as self-driving cars flood US roads

Self-driving cars - Vehicle in Tunnel

These automated vehicles will remove 90 percent of the risk associated with driving a car. Self-driving cars may still be at their very earliest uses in certain very specific locations, but the auto insurance industry is already bracing for them. After all, these vehicles will change the nature of the need for coverage. As it appears that a substantial amount of the risk from driving will shrink, insurers are bracing themselves. At the moment, the first wave of self-driving cars come with astronomical premiums. A recent Bloomberg report pointed to…

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