Car insurance rates going up, COVID-19 to blame

INDIANAPOLIS (WISH) — In case your automotive insurance coverage charges have gone up, you’re not alone. Premiums are within the rise, and the COVID-19 pandemic is partially in charge.

“Chances are you’ll keep in mind that again throughout COVID-19 in 2020, auto insurers lowered charges and returned round 14 billion {dollars} nationwide to their coverage holders as a result of fewer folks had been driving,” Scott Holeman, spokesperson for the Insurance coverage Info Institute, which is a non revenue that educates shoppers about insurance coverage, mentioned.

Now, the precise reverse is going on. There are extra drivers on the street, and which means extra accidents. Due to a labor scarcity, automotive repairs take longer.

“We have now increasingly more vehicles with subtle expertise, and people tech savvy vehicles are designed to maintain folks protected, however with that expertise is the next expense,” Holeman mentioned.

A components scarcity, inflation, and provide chain issues are additionally in charge.

Lawsuits and dangerous driver habits are additionally driving up premiums. Holeman says it’s exhausting to foretell when charges will return down.

“We proceed to see that persons are driving extra dangerously, and so quite a lot of it’ll rely on driver habits,” he mentioned.

Indiana is among the cheaper states for auto insurance coverage. Holeman provides that in case you are nonetheless working from house, you could possibly negotiate a decrease insurance coverage premium. The place you park and the way a lot you drive might additionally affect your charges.