The Continued Rise Of Auto Insurance

Having a car is one of the best privileges we can have as a person. It gives you ease of transportation and the ability to set your own schedule when going places or planning trips. Now, as a responsible car owner, you should not only maintain your car's health regularly but you should also be ensuring its safety if unfortunate events like accidents happen. Get auto or car insurance.
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Car insurance is on a continued rise in 2021. Insurance costs had been declining last year, caused by consumers driving less and insurers issuing refunds. Below are some trends to know for car insurance.

Insurer Refunds
As mentioned earlier, insurers have been issuing refunds to clients because some have decided to stop driving. An estimated $14 million was refunded to policyholders because of the drop in the miles driven because of the pandemic. People were not able to go places because of the continued lockdowns and travel restrictions.

Those refunds made the price of insurance lower, with flatlining or declining rates. On the other hand, the return to the pre-pandemic driving levels will potentially mean more accidents, and there could be more costly claims for insurers to cover.

Insurer's Margins
The current pandemic situation will still be challenging even for the best insurance companies until the end of the year. It is expected that margin pressure will be driven by higher auto repair or replacements costs, increase sales in vehicles, used car price hikes, and return to normalized driving trends.

Increase in Fuel Rates
It has been observed that consumers should prepare for a change with their existing vehicles. Shortage in microchips and subsequent inventory levels for newer vehicles have highly increased the value of used or second-hand cars. This boost may encourage car owners to sell their cars or swap them for something more recent. Additionally, new cars tend to be a lot costlier to insure than older cars.

At Insurance Marketplace, Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (541) 779-0177. You can also request a free quote by CLICKING HERE.