Global Research Unlocked

Funny commercials, sobering bills; inflation coming to auto insurance


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Safe drivers look elsewhere for discounts as the auto insurance industry is entering a hard market

During the peak of COVID lockdowns, miles driven declined dramatically while auto insurers posted highly profitable quarters and policy holders enjoyed premium cuts and rebates. But the pandemic recovery commenced, pushing miles driven higher along with pricing for used cars and parts and forcing a reversal of fortune for auto insurers. Josh Shanker joins us to discuss how the the recent hit to auto insurance profits will result in insurers pushing premium prices higher, likely leading consumers to shop around for better rates and resulting in market share shifts. He advises consumers to shop for insurance early while insurers and regulators implement premium increases. Josh also discusses long term implications for the industry from innovative safety technology and autonomous vehicles.

 

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©2022 Bank of America Corporation. All rights reserved.

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