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United States Car Insurance Trends

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2022 is a year where the majority of the drivers in self-isolation are returning to the roads, and the automobile supply chain is experiencing a delay. The car and auto insurance world are so closely intertwined that one factor affects the rest. The last year has been reported to be a volatile one when it comes to the auto market. Claims are being filed, insurance providers are being switched, and traffic has been on the rise. More causes and effects of car insurance trends in the United States are explored below. 

Trends in The Car Insurance Market 

The following are some of the trends that the car insurance market as a whole has been seeing within the last year:

  • Car insurance shopping is inconsistent – Auto insurance providers have reported a volatile market when it comes to buyers and new policies being issued. This has been ongoing since the COVID pandemic began. This can be due to an inconsistent number of drivers on the road during this time. 
  • Insurance claims increased as drivers did return – As people began to return to their cars and traffic increased, there was naturally an increase to a relatively normal level of claims being filed. A trend that customers and policyholders have noticed related to their claims is that they always have to talk to multiple insurance agents to settle their claim when it really should just be one. 
  • Increase in risky driving behavior – It was mentioned that car insurance claims have increased over the last couple of years –the question is why? It’s simply because drivers that are sometimes prone to risky driving behavior are back on the road. Despite all the discounts promoted for good drivers, drivers still experience bad habits behind the wheel.

Trends in The Car Market

The car market and automobile industry as a whole are also subject to trends that influence their production and, thus, the car insurance industry since policies can’t be written without a vehicle. The market not only has to keep up with its production quotas and customer demand. Here are ways that have been affected in recent years:

  • Supply chain shortages – It’s no secret that some supply chains in the United States are strained at the moment. Several car lots have more pre-owned vehicles than new ones. This also plays into car insurance as the latest in safety features aren’t available to buy, and a car’s safety and security features can shave some cost of the policy. 
  • Mileage among drivers has increased to pre-pandemic levels –  With drivers returning to the road, their annual mileage has returned to normal. Mileage tracking has never been easier at the same time, with some cars having tracking and telematics. This can be especially handy when leasing a car where annual mileage is capped at a certain limit. 
  • Telematic systems interest has grown – While on the topic of telematics systems for cars, interest in them by customers has been found to grow due to the insurance discounts having one installed on their cars entails. This is a plus for the car insurance industry because they can monitor a policyholder’s driving habits more closely.

What All These Trends in Car Insurance Means 

The post-pandemic world in the United States may possibly see a “revolution” in car insurance, as some sources describe it. What began as a return to normalcy became a revolution with new telematics technology and other ways to obtain a car due to the supply chain shortage. The good news is that car insurance has remained consistent for the most part throughout this time. Several experts estimate that the real change will be how drivers in the United States find and acquire car insurance, along with new ways of pricing it.    

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