The second annual Insuring the American Driver Report, published by Insurify, indicates a 12% increase in auto insurance premiums in 2021 when compared to 2020.
A typical American driver currently pays $1,633 a year for insurance, a figure that is expected to increase by 5% by 2022 to just over $1,700.
Insurify's research team analyzed more than 40 million car insurance quotes across the United States to identify trends in auto insurance and driving behavior, as well as how COVID-19 continues to affect these categories.
The report examines current reckless and aggressive driving behavior rates, a troubling trend that surfaced during the COVID-19 pandemic, showing that such patterns persist even after restrictions and lockdowns are lifted.
Between March and May 2021, the number of driving-related fatalities per mile driven increased by 26% compared to the same period in 2019. The level is only 3% below the highs of 2020. The heightened fatality rates that accompanied the pandemic persist even as traffic levels gradually return to pre-pandemic levels.
According to Kacie Saxer-Taulbee, head of Research and Content at Insurify, several factors impact insurance prices, including inflation exceeding 5%, returning driving rates to pre-pandemic levels, and increasing collision rates.
Despite the absence of economic factors, drivers report a distinct difference in their experiences on the roads in 2021, with 38% reporting more frequent driving and 44% reporting more aggressive driving."
Increased levels of reckless driving behavior and fatality rates could contribute to the rise in auto insurance rates.
A policyholder with a clean driving record pays 25% more for car insurance than aggressive drivers.
The report also provides insight into self-reported driver behavior based on a survey of more than 1,000 drivers:
-In 2021, 44% of drivers observed more aggressive driving on the roads
-38% of drivers reported driving more in 2021 than in 2020
-41% report an increase in their car insurance premiums from one year to the next