A ValuePenguin “State of Car insurance in 2021” report announced a week ago estimated that auto insurance rates this season represent a 1.7 percent decline — the first reduction in more than a decade.
“The speed decrease in 2021 is an anomaly caused by fewer Americans driving in 2021 due to the COVID-19 pandemic,” the LendingTree subisidiary wrote in a news release Jan. 7. “Less drivers on the highway, and a steep reduction in claims brings the average price of Car insurance in 2021 to $1,636.”
CCC recently reported that repairable auto claims fell 21.3 % in 2021. These were still down 19.5 percent in December 2021.
Arkansas, Ohio and Michigan premiums fell a lot more than 4 %, which ValuePenguin known as the largest in america. Arkansas was down nearly 5 percent.
ValuePenguin called the reduced national average premium still “significantly higher” than the usual decade ago, representing a 106 percent increase over 2011. It also predicted rates would rise the coming year.
“Rates Will Rebound in 2022 and Here’s Why: As Americans return to normal, auto insurance rates will rise again,” ValuePenguin wrote. “The rise in distracted driving, and much more expensive claims from smart technology in vehicles will continue they are driving rate increases.”
Bureau at work Statistics CPI data from 2011 to 2021 found car insurance prices rose a lot more than 40.1 % in that decade. The cost of auto body work only rose 24.9 %, and costs overall — i.e., the U.S. inflation rate — only rose 15.1 %.
ValuePenguin said its 2021 “State of Auto Insurance” looked at RateWatch filings and 15 million car insurance quotes across 72 insurers.
The company’s analysis specifically compared rates for any 30-year-old man driving a 2021 Honda Civic EX purchasing a policy offering $50,000 per person /$100,000 per accident bodily liability and underinsured/uninsured motorist bodily injury coverage, injury protection, $25,000 property damage liability coverage and $500-deductible comprehensive and collision policies. The hypothetical driver had average credit history and no other prior traffic violations.
ValuePenguin said quotes could differ from around 242 percent between insurers. It also noted that switching one’s deductible from full collision and comprehensive coverage to minimum high-deductible protection could knock the price of having both auto body protections from $2,390 to $937.
The cost here's interesting in that CCC’s “Crash Course” says the average repairable vehicle severity in 2021 only agreed to be $3,225 — cheaper to pay out-of-pocket than 2 yrs in the max premium. The average totaled vehicle in 2021 was worth $9,861, and also the average repairable vehicle value was $16,488, according to CCC.
