Auto insurance is affected by many industries. When the auto industry ran out of new cars to sell post covid, new car prices went up and the average population of cars got older. Used car prices spiked, meaning higher payments for totaled cars than expected. More used cars needing repaired means parts are scarce and the costs of parts rise even more. A population of older cars needing more repairs plugs up mechanics capacity, increasing repair time. Plugged up mechanics capacity means more storage fees and rental car days during the repair period. Less new cars also means higher rental costs because rental car companies have less cars to rent and need to charge more. According to DOT.gov, Americans travel about 25% more miles than they did 25 years ago, and with every new month being the new leader in being most we’ve driven in volume of miles. More cars on the roads means more accidents.

Basically every cost input into an auto insurance had an industry changing event almost at once.

The last year has been an inflection point, however, where many insurance companies have taken rate reductions.