In 2021, an estimated 31,720 drivers died in car crashes, which represents a 12% increase over the previous year. Even though America was in the process of locking down and sending workers to be productive at home, road fatalities were rising dramatically. This spike is the most drastic year-over-year rise ever recorded, and the fatality rate was already beginning to soar exponentially. The rising fatality rate on U.S. roads is going to undoubtedly make car insurance rates higher for all drivers.

Why are Car Insurance Prices Rising so Dramatically?
Since insurance companies are paying out more in claims after these accidents, the inevitable higher costs will hike premiums for all types of drivers looking for comprehensive or full coverage to be on the road.

When the pandemic first began, auto insurance companies were offering rebates because of the increase in safety due to less congested roads. But when the numbers rolled in, it was evident that increases in rates were unavoidable. According to INSURIFY, a large online marketplace for insurance, the average annual cost for an auto insurance policy in 2021 was $1,663 – which was a 12% increase over the previous year. Other reliable entities are projecting a further increase of 5% for 2022, meaning the average policy could run over $1,700 this year.

Keeping Your Policy at a Reasonable Rate:
Inflation and dangerous driving are a couple contributing factors in this jump in prices. Sometimes the domino effect of a job loss, other health issues like hospitalization, and debt that was already incurred before the pandemic are influencing many drivers’ daily habits. As stress levels rise across the country, drivers may not be totally focused on the road.

We have been watching these trends for some time, and can help you lower your rates to more reasonable level. Just as with any financial transaction, no one enjoys sticker shock! If you happen to live close to your urban area’s downtown, your rates may be higher, due to the sheer number of accidents in more crowded areas. But we have surprisingly seen this trend change a bit as of late, since even those moving out to the suburbs have experienced higher fatalities as the stress of being cooped up during the pandemic has caused drivers to get behind the wheel recklessly and with a bit more angst.

How Alexander Insurance Can Help:
We can sit down with you and perhaps have you switch to a higher deductible, and then touch base periodically to look around for a more affordable policy. Taking the step to bundle your home insurance with car insurance can be a great help and offer you the peace of mind that comes from taking care of a few different elements of coverage with one provider. We are always willing to adapt to the challenges of a constantly changing landscape and review your policy options to provide for you the most cost-efficient and reasonable means of roadworthy coverage.