The Sign Post Ahead: Drivers in a Twilight Zone of Insurance Frustration

In the old Twilight Zone TV series, creator and host, Rod Serling used to warn viewers that the sign post ahead said you are now entering, “The Twilight Zone.” That’s where U.S. drivers are today when it comes to auto insurance premiums.

This not from the late Rod Serling but instead from a survey done by Guardian Service.

So far this year, 66% of auto insurance policyholders had their premiums go up and it’s happening while they try to find ways to cope with the increases. The average rate hike was $70 but 27% of those surveyed say their premiums jumped $100 to $200.

The increases have led to 85% of drivers thinking the auto insurance pricing models used by insurers are unfair. And 71% of them think insurance companies are using inflation as an excuse to raise their rates more than they need to be raised.

This has led 23% to think about canceling their current policy and go seeking cheaper pastures. That, too, is frustrating as 20% say they shopped around and couldn’t find anything cheaper with their current coverage.

To continue to afford insurance:

• 39% have completely skipped or delayed auto maintenance
• 15% have reduced driving to save on expenses
• 15% actually made the switch to a different insurer
• 10% have reduced their liability coverage
• 10% increased their deductible
• 8% even thought about selling their auto
• 7% have dropped comprehensive or collision coverage or both

In the meantime, drivers are looking at ways to use technology to solve their high premium crisis:

• 33% say they’d think about switching to usage-based insurance
• 42% would install AI-generated safety features to get discounts
• 33% would stop late-night driving and other driving habits

Source link: PropertyCasualty360.com — https://bit.ly/4iT80hP