![]() Vehicle Theft – Replacing a stolen vehicle is very expensive, which is why so many people choose to carry comprehensive insurance coverage.No-fault states often require Personal Injury Protection coverage, otherwise known as PIP, which can drive up insurance costs. At-Fault Insurance – Though no-fault coverage was initially conceived to lower insurance rates, it hasn’t worked that way in reality. Local laws and population density are only two of several factors that can dramatically impact the cost of insurance for people living in a specific state, including: While the final numbers weren’t available at the time of this writing, the second quarter of 2020 showed a decline in overall traffic fatalities, further reducing insurance premiums for drivers across the country.Ĭar insurance costs can vary widely from state to state. With many companies announcing that work from home options will continue for the foreseeable future, insurance companies are wise to consider that the reduction in miles driven may continue for many months or years. In February 2020, there were 3,277,759 million miles driven in the United States, but that number dropped to 2,857,200 million miles by November. That has encouraged them to get ahead of the competition and lower their rates to compensate for the reduction in drivers on the road. Many insurance companies expect that some of the changes brought about by the pandemic will be permanent. An estimated $14 billion in insurance premiums was refunded to customers because insurance companies saw upwards of a 40% reduction in losses. In 2020, the world saw unprecedented changes caused by the COVID-19 pandemic that took millions of drivers off the road as they decided to work from home. ![]() The state counted 212 traffic fatalities in 2012, and preliminary data on 2020's fatality numbers indicate this number has stayed high: the Montana Highway Patrol reported there were 207 deaths last year due to car accidents. As with South Carolina, this can, in large part, be attributed to Montana's persistently high traffic fatality rate. Rates there increased by an average of 37% since 2015. Montana: Montana holds the top spot for insurance premium rate hikes, with Montana residents seeing the steepest increase in coverage costs over the last six years. And the number of fatal collisions in a year has increased steadily - from 756 in 2014 to 969 in 2018 - a trend that is undoubtedly reflected in South Carolina's car insurance rates. According to the South Carolina Department of Public Safety, there was one traffic collision every 3.7 minutes and one fatal collision every 9 hours on average in 2018. While data is not yet available for 2020, collisions have been on the rise in recent years. South Carolina: South Carolinians saw the largest year-over-year rate increase in insurance costs: their rates increased an average of 4.3% from 2020 to 2021. And the second, the New Jersey Insurance Fair Conduct Act, would make it easier for citizens to file civil lawsuits against insurers for bad faith claims. The first is Senate Bill S111, which would ban auto insurers from considering a driver's credit score, occupation, education level, marital status and other similar factors when determining premium amounts. Whether that downward trend continues is still to be determined: there are two legislative proposals currently being debated that, if passed, will have a significant impact on insurance rates. New Jersey: New Jersey's auto insurance premiums have declined the most over the longer term, with drivers experiencing a 30% drop in annual premiums since 2015. This is due, in part, to the state's recent move to reduce no-fault requirements - a primary driver of the state's historically high insurance rates. Michigan: Michigan experienced the largest decrease in rates from 2020 to 2021, with rates declining an average of 25%. While many have expressed concern that this will ultimately raise rates, this has so far not borne out: Arizona's rates have slightly decreased from 2020 to 2021 instead. ![]() Some states saw changes in cost due to new local laws:Īrizona: Arizona increased the minimum liability levels in a change effective July 1, 2020.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |