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Inflation has been taking a toll on many aspects of life in the US recently, with major car insurance companies now also filing for rate increases this year.
Inflation Having an Impact on Vehicle Insurance Prices, Too
Car insurance premiums have already been rising from 5% to 15%, which is a rise of about $16.55 a year or $138 a month. Now the largest auto insurers in the United States are adding to the problems by filing for rate increases in 2022.
Small Business Fleets Hit Hard
The rate increases are likely to have a hard impact on any small business owners running fleets, or any number of vehicles really. Another problem is the knock-on effect. For example, due to the car insurance inflation, State Farm is planning to increase by 4.2%, while it has been forecasted that Allstate will be increasing rates by 12%.
The main contributing factors to the rate increases include the rising price of gas, as well as higher degrees of fuel theft and labor shortages. There are also ongoing supply chain disruptions.
High Gas Prices a ‘Threat to Living Standards’
According to BuyAutoInsurance, 43% of Americans state that rising gas prices are their biggest concern of 2022. The former Governor of Connecticut, Jodi Rell, said: “This continuing spike in gas prices is bad for consumers, bad for our economy, and bad for all other businesses. It is hurting us and costing us jobs.”
“Consumers see high gas prices as a threat to their living standards and a threat to the ability of the economy to create new jobs,” said Richard Curtin, an American economist and researcher.
The National Insurance Expert at Consumer Federation of America, Doug Halle, added: “I’ve seen premium increases in the range of 5%, 10% and even 15%. The rate hikes are driving up the already high cost of car ownership. That throws a huge wrench in the budget of people who are really just struggling to get by.”
Average Cost to Fill a Tank
As of March 2022, the average cost to fill a car gas tank reached $51.87. Filling a motorcycle tank now averages at $19.95, while the cost of filling the tank of a truck reached a massive $99.75. Now insurance premiums are rising as well, vehicle owners are desperately looking for ways to reduce their costs.
This article, “Inflation Having an Impact on Vehicle Insurance Prices, Too” was first published on Small Business Trends