Auto Insurers Likely to Face Price Hikes Despite Favorable Insurance Rates

Elyse Greenspan, the managing director of Wells Fargo, said that the rise in insurance prices is due to the premium base in May 2020 was impacted by the refunds.The Auto insurance companies had refunded $14 billion in premiums to their customers in the previous year as the number of driving consumers had failed.

Most importantly, the rates got stagnated and had declined in the first quarter.According to the data released by the latest consumer price index, the Auto insurance index is increased by 16.9% in May, which was up 6.4% in April.

This was the first increase seen in the year 2021 since March 2021.As the economy is gaining momentum, Auto insurers are facing enormous challenges. As vaccinations are being done, workers get back to work, and people are going for summer vacations. Data published by the government states that the current statistics have shown a 19% of the rise.

Michel Leonard, III vice-president, said, as people will get back to work, the rate of accidents diminished last year, but there was a rise in fatalities by 7%. According to experts, accidents have occurred due to fast driving, distraction, and many other reasons. Also, accidents occur because many of the drivers are inexperienced and fail to navigate through the traffic. Increase. The accident will be severe if it follows the last year’s trends.