Toronto, Ontario — The latest U.S. Auto Insurance Market Report from S&P Global Intelligence is showing that the costs of the COVID-19 pandemic have made their way into the auto insurance industry, in the form of increased premiums for many American drivers.
“Auto insurers provided estimated premium relief of as much as $16.4 billion to their customers in 2020 as COVID-19 curtailed commuting and leisure travel,” said Tim Zawacki, principal analyst for FIG at S&P Global Market Intelligence, in a statement from the company.
“In 2022, some of those customers may face higher auto insurance rates as carriers respond to a return to normal driving patterns and claims costs continue to climb.”
On a brighter note, the report also highlighted the ways in which the increased adoption of telematics systems in vehicles can create “more stable and predictable auto insurance results over the long term.”
The report also notes that inflation is due to decrease as supply chain disruptions and materials shortages begin to ease.
