Auto insurance rates declined in 2020 for the first time in a decade, by ValuePenguin.com.The survey results anticipate a 1.7 percent decline nationally.A major factor in the decline are the pandemic-related discounts granted by insurers in 2020.
These discounts have been valued at $14 billion, according to Triple-I estimates.Triple-I Chief Actuary James Lynch that many auto insurers are building these discounts into rates for 2021 and that driving declined by as much as 50 percent during spring lockdowns.The estimate of just how much rates are declining depends on the metrics you use.
The (CPI) report for December 2020 indicates that auto insurance rates declined by 4.8 percent nationwide compared with the same month last year.By contrast, the CPI showed the cost of new vehicles rising by 2 percent in December and by 0.5 percent for the full year 2020.A of the Missouri auto insurance market by the state’s Department of Insurance discovered even larger declines.
It found that, when adjusted for inflation, the typical Missouri driver has seen a 17 percent decrease in auto insurance premiums since 1998.
Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Health Insurance USA.
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