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.
(As of June 10, 2024)
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