April 2025
WalletHub recently published insight featuring Pearl Steinbuch, Senior Lecturer of Markets, Public Policy, and Law, discussing the factors contributing to auto insurance premiums rising.
Advancements in vehicle technology have made repairs more expensive, while rising healthcare costs are pushing up liability and injury claim amounts. At the same time, legal fees and larger settlements are contributing to higher overall costs. Environmental disasters have led to more insurance claims, and since the pandemic, increases in driving and distracted driving have caused a noticeable rise in accidents.
“In addition, the prevalence of distracted driving—largely attributable to distractions such as texting—has increased, contributing to a rise in accident rates and corresponding insurance claims,” Steinbuch adds.
Overall inflation in parts, labor, and services further contributes to higher premiums.