We’re almost half way through 2022 and most of the daily headlines can be summed up with one word: inflation.
Yes, inflation is tiredsome to discuss but it affects everything. Insurance is no different. If you remember back when the pandemic started over two years ago, most auto insurance carriers sent credits back to their customers as a way to help households. There was no requirement to do this. Insurance companies knew that policy holders were driving less, and with social distancing and remote work the norm, policy credits was a way to balance out the temporary change to the auto insurance industry. Over the next year or two most auto insurance carriers lowered or steadied their rates. It’s interesting to think about because costs all around us were increasing.
Now as we sit in the summer of 2022 auto insurance rates in Virginia (and across the country) are increasing. The reason is simple: inflation. Rising costs for rental cars, labor, medical cost, parts and services are big factors. Both new and used vehicle prices have also risen dramatically, which means insurance carriers are paying more on vehicle payouts. And 2022 is on pace to be one of the deadliest driving years on records with accidents involving a fatality pushing record highs.
“We have to raise our prices,” Tom Wilson, Cheif Executive Officer of Allstate Corp said Monday in a Bloomberg Television interview. Premiums have already increased 6.5% in the past six months, “and we think we’ll have to go higher from there.”
The above statement was made on May 9th, 2022.
How To Compare Auto Insurance Rates In Virginia
Insurance rates in Virginia will peak and valley over the next year or two. There is a lot of unknown regarding how long and how high inflation will go.
This is why working with our Family of Independent Insurance Agents puts you at an advantage. Instead of working with one with insurance company, we represent multiple insurance providers. This allows us to compare rates, coverages, and bill plans.
And the best part is we’re here to help.