With the ongoing pandemic, what will auto insurance rates look like in 2022?
Water is blown into the air by vehicles on I-15 during a rain storm in Salt Lake City on Wednesday August 18. This year, people have hit the road again, causing more accidents, tickets and, yes, insurance premiums. What will insurance rates look like next year? (Spenser Heaps, Deseret News)
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SALT LAKE CITY – The pandemic has made the past two years quite strange for the auto insurance world.
In 2020, there were so few drivers on the roads that insurance companies actually started returning refunds to their customers because they were paying so few claims with so many people staying at home.
Then, in 2021, people hit the road again but apparently were out of practice, leading to an increase in accidents, tickets and, yes, insurance premiums.
So, as we prepare to ring in 2022, what will the new year mean for our auto insurance budgets?
âEach insurer calculates risk differently,â said insurance expert Maia Sutton with insurance comparison site Insurify. “In fact, based on our data, we expect them to continue to increase slightly, then level off in 2022.”
Of course, supply chain issues and inflation contribute to it, but the type of car you drive remains one of the most important factors in determining your premium: in particular, the car’s safety rating and its replacement cost in the event of a wreck.
âInsurance premiums for older car models are generally cheaper because parts are easier to find and replace in the event of an insurance claim,â Sutton explained.
And with the shortage of new and used cars available to replace the total number of vehicles, this could also impact premiums in 2022.
The bottom line is, Sutton said, “The general trend is for things (auto insurance costs) to get more expensive.”
As we reported last month, over 785,000 Utahns do not have comprehensive auto insurance. This coverage applies to non-accident damage to your car, such as a snow-laden tree branch falling on it.