by Daniel Brouse
In recent inflation reports, homeowners’ insurance, wages, and auto insurance have emerged as primary drivers contributing to the persistence of inflation. The inflationary pressures on auto insurance have been further exacerbated by two key factors:
1) Collision coverage: The prevalence of accidents caused by distracted driving, particularly due to cell phone usage, continues to rise. Distracted driving significantly impacts insurance premiums, as the heightened accident rate results in increased claims for insurers to process.
2) Comprehensive coverage: There has been a notable surge in weather and climate-related claims, including incidents such as floods, fires, hailstorms, and falling debris. These natural disasters contribute significantly to insurance claims, necessitating higher payouts from insurers.