Auto Insurance
Why Auto Insurance Rates Are Likely to Increase in 2020
Auto insurance rates have consistently increased over recent years, with underwriting losses expected to cause further car insurance premium hikes in 2020. These high losses have been driven by devastating natural disasters as well as more frequent and expensive car accidents.
Traffic jams in the city. Source: Getty Images
The combination of record-setting natural disasters, an uptick in distracted-driving accidents and the increasing prevalence of tech-loaded vehicles that are expensive to repair mean insurers are likely to raise rates in 2020.
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These factors, coupled with the fact that insurers have failed to turn an underwriting profit in recent years — despite year-over-year rate increases — indicate that drivers will pay more for car insurance in the coming year.