Zero2Turbo
    Facebook Twitter Instagram
    Facebook Twitter Instagram RSS
    Zero2Turbo
    • Home
    • Contact
    • Videos
      Featured

      Tesla Model S Plaid Takes EV Nurburgring Lap Record Back From Porsche

      By Zero2TurboJune 5, 2023
      Recent

      Tesla Model S Plaid Takes EV Nurburgring Lap Record Back From Porsche

      June 5, 2023

      Bugatti Bolide Goes Extreme Track Testing

      June 1, 2023

      New Range Rover Sport SV Revealed Packing 626 HP (467 kW) V8

      May 31, 2023
    • South Africa
    • Zero2Turbo Telegram
    Zero2Turbo
    Home»Zero2Turbo»Drivers See Major Rate Increases in Auto Insurance Due to COVID
    Zero2Turbo

    Drivers See Major Rate Increases in Auto Insurance Due to COVID

    By Zero2TurboMay 12, 2022Updated:May 19, 2022No Comments
    Facebook Email Twitter LinkedIn Telegram WhatsApp
    Share
    Facebook Email Twitter LinkedIn WhatsApp Telegram

    The COVID-19 pandemic brought plenty of price fluctuations, and we’re still seeing the effects of that in 2022. Even with things starting to return to normal over the past few months, auto insurance rates have been spiking – and will probably continue to increase in certain locations. This doesn’t mean that everyone is having to pay more for insurance, though; if your car insurance has gone up in the past few months, you might be able to get a better deal by switching companies. The price hikes are usually linked to the area you live in, but it could also be due to the policies of your specific insurance company.

    The good news is that even though the profit margins of many auto insurance companies are under pressure, not all of them have decided to raise their rates across the board. This means that even if some rates are going up in your area, you may be able to find a car insurance company that’ll give you a better deal. 

    Why are the rates going up so drastically, though? There are a few factors at play; we’ll get into them below, as well as an overview of car insurance rates in general.

    Rate hikes vary from state to state

    Some of the reasons for the increased rates are related to the pandemic, while others are tied to location. It’s already well-known that if you live in an area with extreme weather patterns, for instance, you’ll have to pay more for auto insurance. That’s still true, but more people than ever are paying increased rates because of their location. From severe weather events to higher instances of auto theft, the trends have changed for the worse in many areas, leading to corresponding changes in auto insurance rates. 

    Statewide driving patterns also play a part; even though we can see the same trends playing out in every state, there’s still significant regional variation. For example, in 2019 Vermont saw only 0.64 deaths per 100 million vehicle miles traveled, while Arizona had a traffic accident fatality rate of 1.40 deaths per 100 million vehicle miles traveled. Arizona had the 10th-highest rate among the 50 states, with significant variation among each state. In 2020 Arizona recorded 1,057 fatalities, despite the fact that there was a 7% drop in miles driven; this was the highest number of traffic-related deaths in Arizona in 12 years.

    Auto insurance rates in the US: the big picture

    Despite all the ruckus about rising insurance rates, the nationwide average increase doesn’t look too bad. The average price of car insurance has jumped by about 3% in the US, but that’s not what people are concerned about; some states are seeing increases as high as 12%.

    Plus, while many auto insurers are raising some of their rates, they aren’t raising all rates across the board. For example, Progressive Corp. issued 38 rate hikes in 10 states in November of 2021, while GEICO raised 12 of their rates for six states. When you take all of the rate hikes for all of the insurance companies into account, you’ll certainly see a lot of increased prices. That being said, just because you’re paying more with one insurance company doesn’t necessarily mean you’d pay more with another. 

    Why auto insurance rates are going up

    You might be surprised at just how many factors have converged in the last couple of years to spike auto insurance rates. Some of them are strongly linked to the pandemic, while others are just a matter of unlucky timing. 

    • Extreme weather events have caused car insurance payouts to skyrocket. In 2021, two winter storms caused enough damage for auto insurance companies to report $15 billion in insured losses. Guess what they paid for weather-related damage in 2020? $1 billion. Because of this, car insurance rates have shot up in the states that may experience a repeat performance of these severe winter storms. Unpredictable weather patterns have caused fluctuations in insurance rates before, but last year’s increases happened to come at a time when other factors were also driving the rates up. 
    • Auto theft is impacting car insurance payouts. Cars and their parts have always had value, whether they’re stolen or not; however, supply issues have made these commodities more valuable than ever. This has encouraged waves of crime in many areas, and car insurance companies have started responding by hiking their rates. Just as an example, 2021 saw 293% more claims for stolen converters than 2020 – and people are stealing a lot more than just converters.
    • Rising vehicle prices are affecting auto insurance rates. Among other things, the total price of an insurance policy will be affected by the value of the vehicle. Even if you’ve had the same car for 10 years, you might be paying more to insure it because its value has gone up. Whether you’re talking about new or used cars, 2022 is proving to be an expensive year for anyone wanting to buy or insure a vehicle. This is because a worldwide microchip shortage has caused delays for auto makers, who have struggled to meet demand for over a year now. The shortage of new cars has put pressure on the used car market, so even complete lemons are being sold for a good bit of money. And of course, if you want to insure an old lemon, you’ll now have to shell out quite a bit of money.
    • Rising traffic accidents are affecting car insurance rates. It would seem that the driving habits of Americans in general have deteriorated over the past couple of years, resulting in more car crashes – and more insurance payouts. Between more frequent and more severe traffic accidents, car insurance companies are protecting their bottom line by raising their rates.

    In conclusion

    A lot of people have noticed their auto insurance bills going up over the last several months, and it looks like this pattern will continue for quite a while. Given time, however, it’s likely that auto insurance rates will even out eventually.

    Share. Facebook Email Twitter LinkedIn WhatsApp Telegram
    Previous ArticleWatch Aston Martin Testing The Valkyrie In Soaking Conditions at Mugello
    Next Article Mercedes-Benz 300 SLR Rumoured To Have Sold For An Astonishing R2.2 Billion ($142m)

    Related Posts

    Tesla Model S Plaid Takes EV Nurburgring Lap Record Back From Porsche

    June 5, 2023

    Audi Driving Experience Returns To South Africa

    June 5, 2023

    R1.6 Million VW Golf R 333 Sells Out In Eight Minutes

    June 5, 2023

    Jaguar Land Rover Is Now Officially Known As JLR

    June 2, 2023

    BMW M2 CS To Pack 518 HP (386 kW)

    June 2, 2023

    20 Must-Have General Automotive Accessories for a Smooth Ride

    June 1, 2023

    Leave A Reply Cancel Reply

    Popular Posts
    • VW Reveals Lime Yellow Golf R 333 Limited Edition
    • New Range Rover Sport SV Revealed Packing 626 HP (467 kW) V8
    • Watch and Listen To The Lamborghini Revuelto At The Nurburgring
    • Enhance Your On-Road Experience: Unlock the Beauty of Car Interior Design
    • First EV From Lamborghini To Be Two-Door GT

    Latest Instagram Photos
    • Looks like the new Mercedes-AMG S 63 E PERFORMANCE was spotted testing in South Africa 🇿🇦

That start-up sounds pretty damn promising!

This thing packs a whopping 791 hp (590 kW) and 1,430 Nm of torque.

📌 Graskop, Mpumalanga

🎥 @guylin_
    • Look what’s arrived in South Africa 🇿🇦 

Nothing confirmed by Toyota SA as of yet but here is the 224 kW GR Corolla!

Image source: @average_midship 

#ExoticSpotSA #Zero2Turbo #SouthAfrica #Toyota #GRCorolla
    • We waited a fair bit for the Tiguan R to arrive but that means it has been given enough thought and executed with the sort of German precision that makes us happy to have waited.

As fast SUVs go it’s a cracker, and with a price tag starting from R1,014,900 it is actually decent value in the segment.

It’s fun, aggressive when you want it to be and remarkably civilised when you don’t. Cars like this rarely make sense, but the Tiguan R is one case where that argument starts to change one's mind.

We cannot wait to drive the matching Golf next week!

#ExoticSpotSA #Zero2Turbo #SouthAfrica #Z2TDriven #VolkswagenTiguanR #TiguanR #VWTiguanR
    • The very first SA-spec BMW M2 snapped at BMW HQ in Midrand.

Zandvoort Blue would not be our choice but the looks have certainly grown on us. What about all of you?

Shots via @projectthart 

#ExoticSpotSA #Zero2Turbo #SouthAfrica #BMWM2 #NewM2 #ZandvoortBlue
    • If you’re expecting a faster, angrier and more focused version of the original 86, you’re going to be happy with this car.

Toyota finally gave the 86 more power. It’s not take-your-breath-away power, but again, it’s not made to win drag races. If you want more power, get a Supra.

Sure it is a bit more pricey this time around but it is a no-regrets kind of car that you will enjoy just as much today as 10 years from now.

Long live the manual transmission, especially when it’s packaged within something as fun as the Toyota GR86.

#ExoticSpotSA #Zero2Turbo #SouthAfrica #Z2TDriven #ToyotaGR86 #GR86 #Anime #InitialD
    • Stunning Jaguar F-Type Project 7 spotted in sunny Cape Town yesterday by @ryan_6r 😎

Just 5 of these made their way into SA making this quite a rare sighting!

#ExoticSpotSA #Zero2Turbo #SouthAfrica #Jaguar #FTypeProject7 #Project7 #JaguarFType #CapeTown

    Follow Us

    Facebook Twitter Instagram YouTube RSS
    Designed by Zero2Turbo.

    Type above and press Enter to search. Press Esc to cancel.