Auto Insurance Premium on the Surge – Will we see more uninsured drivers?

United States is going through a lot of changes and one notable change is related to the surge in insurance premiums. Now there are a number of American drivers trying to make the difficult decision between trying to stay insured or the risk of being uninsured.

As Insurance is no more cheap, drivers are facing issues that are related to paying medical bills, repairing vehicles or even handling the overall inflation along with trying to stay insured.

auto insurance premium
Image credit: Freepik

Let’s see what exactly has happened in the past 2 years. In 2022, auto insurance premiums rose to 7.9% and then in the first half of 2023 it went up to 5.9%. Because of this unexpected rise, many customers had to think about their decision to renew their insurance. All this has resulted

We have also seen that the American household that has at least one vehicle but no Auto insurance has increased to 5.7% in the first half of 2023. Now it is safe to say that the uninsured drivers are rising worldwide and some states are even experiencing disproportionate concentration of this risk.

Let’s look into one other highlight. Talking about the first half of 2023, 12 states have witnessed a 30% increase in the number of uninsured drivers. Now that we have all the statistics at hand let’s see what customers can do in this challenging time.

First of all it is very important that customers can have proactive communication with insurers. It is important that customers negotiate with the insurance providers to explore potential policy changes that have reduced premiums. Customers can also discuss flexible payment plans so there is no stress about paying the auto insurance payment upfront.

Secondly, customers can find more budget friendly deals by researching online and finding the appropriate insurance providers.

We see the rise in Auto insurance premiums but it is also important to be safe while being on the road. Considering the present finance challenges it is important to explore more options. At the end of the day auto insurance is better than no insurance at all.

Jasper has been an enthusiast of the automotive and IT industries since the age of 16. He independently writes on the auto industry's recent happenings.