How auto insurance prices are set to skyrocket, Bloomberg says

Auto insurance prices across the country are set for a dramatic jump over the next few years, according to the International Association of Insurance Commissioners.

Bloomberg New Energy Finance said that the price of national general auto insurance, a national benchmark that is set by insurers in most states, is set to increase from $18.72 to $22.50 per month by 2021. 

National general auto Insurance will cost $18 to $20 a month by the end of 2021.

That’s a 15% increase from the current level.

National general auto will be priced at $18 a month or more by the time it reaches $23.00 by 2022, the IACCI said. 

It’s not the first time that auto insurance premiums have gone up.

In December 2017, a report by the AAA Foundation for Auto Safety found that average premiums for 2017 were already about 20% higher than the average premiums paid by consumers in the previous two years. 

As of September 2018, the average annual cost for a national general insurance premium for a person under age 55 was $24,095.

By 2022, that will jump to $27,054, the AAA said.

The IACC said that this jump in insurance prices is expected to continue in 2019 and 2020. 

In 2018, insurance companies are expected to increase the premiums they charge for those older drivers with heart disease, diabetes, or high blood pressure, the National Association of State Health Officials said.

They’re also expected to offer lower-than-average coverage for those with pre-existing conditions, which will make it more difficult for older drivers to get coverage.

SOURCE Politico article