Several metrics that influence auto insurance premium rates are starting to improve, but it will take time for these improvements to be reflected in flattening premium rates.

The current hard market wasn’t created overnight. Policyholders and policymakers need to understand how insurance pricing works – particularly the impact of driving behavior and the role of inflation and other considerations that are not driver specific – to inform rate setting. Reduction of risk and underlying cost factors will be key to any future premium rate reductions.

Record-breaking distracted driving has created a great deal of alarm on the roadways, with more frequent and dangerous crashes – many of which are caused by cell phone use – becoming part of the norm in the U.S. While the coronavirus pandemic upended traffic patterns, these trends have continued long past the height of the health crisis and pose a significant risk to both the wellbeing of drivers and the viability of personal auto lines. Progress is needed, and telematics may be a necessary facet in improving the safety of roadways, as well as helping lower premiums for motorists.

Driving without full attention on the road has become increasingly problematic on US roadways. Policyholders can proactively increase safety and reduce insurance costs as the government, insurers, and technology companies confront this growing threat. The first step is understanding the issue.

As you strive to find the best rates for your homeowners and auto coverage, you might think shopping around is the way to manage affordability. However, costs are increasing for everything–groceries, gasoline, and other household expenses–and so are costs for insurers that impact your premiums. Before changing your policy or carrier, consider some factors that can affect your rates and learn how an annual insurance checkup can position you to get the coverage right for you.

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As plaintiff trial attorneys continue to exploit and manipulate the insurance industry for their own financial gain, it is important to understand the facts of how auto insurance is working for the benefit of consumers.