The auto industry and associated insurance providers adapt to changes that we experience from time to time. When there are new impacts on our economy, or sudden emergencies (pandemic…anyone?), they must re-evaluate current policies, continue to reorganize new data, and determine how they will issue quotes for the future of their client base. There are many important and significant factors which come into play and we will be exploring many impacts that can increase or decrease your auto insurance premium.
When it comes to auto insurance, especially how the quotes are made, the insurers often use a series of data sets that come from years of research. This data can be in the form of how large or small a city or town is, their traffic patterns, congested road patterns and potential hazard/accident prone areas, the type of vehicles on the road, drivers’ personal records, and frequency of cars on the streets at every hour of the day.
“But what does that have to do with my insurance premium?”
You’d be surprised, considering the recent changes to the world we live in!
We had ups and downs during the Covid19 Pandemic, product shortages due to economic uncertainty and the unpredictable nature of our entire working culture. All of these different things have had significant impacts on the data sets mentioned before. Imagine conducting brand new research of cities, drivers, and traffic patterns after people were not frequenting the roads in the pandemic, to newer or fewer drivers in populated areas that now partake in a hybrid work week. Many insurance companies are now trying to figure out how to adapt and overhaul data to reflect the current changes in lifestyle and driving behavior.
Coming from another angle, prices on many things such as tools to repair cars, auto industry car parts, and perhaps scarcity of these items, may have insurance companies quote higher prices for claims that deal with auto repair. Many people may not realize that something so basic as a headlight may be harder to find due to the last two and a half years being volatile in nature, economy, and health.
Many auto insurance companies are trying to find a better balance between what they can collect from policyholders and the cost to service these policies by using brand new sets of data which may change again over the next few years.
Rate increases are being filed in all insurance categories but the auto insurance sector is trying to find ways to ease the financial blow to its policyholders by finding new ways to stabilize and manage many of the new lifestyle changes that covid19 introduced. Whether it means asking more question to new policy buyers, or re-evaluating the cost of new or used cars, premiums may see increases until our economy becomes more stable.
From the commercial business auto insurance industry side, there were slight changes but not as drastic as individual auto insurance. This is mainly due to many companies deemed essential and staying opened with a “business as usual” attitude during all of the recent changes in the world.
Whether you are an individual or a business owner who needs auto insurance, there are current impacts mixed with the predictable nature of future impacts that can affect you differently. Many auto insurance companies proclaim that they are often the most changing sector of the industry, and with many of the factors listed, that may very well be correct. Many variables come into play with auto insurance from personal driving records to factors out of our control.
Always remember that Harris Insurance will always be there to help you come up with a custom auto insurance quote. We continue to work for you to provide the best prices in any time of need. Please contact your agent today if you would like more information on auto insurance impacts, re-evaluation of your current policy, any recommendations for additions or an idea of the future of auto insurance from our highly informed professional agents.
Filing Insurance Claims Can Be Stressful
Filing car insurance claims can feel overwhelming, but with the correct information, you can rest assured that you will get back to your life sooner rather than later. Know the laws and keep up on your policies.
If you need a place to start, we can help you. Request a quote, or check out our blog for more helpful information pertaining to all of your insurance needs.
SEE ALSO:
- How Do Car Insurance Claims Work in Florida?
- The BEST WAYS to SAVE on Car Insurance
- Why Familiarizing Yourself with Your Car Insurance Matters
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
