Consumer price Index data shows the auto insurance prices increased 16.9% in May, following a 6.4% rise in April. These are the first price increases since March 2020.
Auto insurers now claim to face “a number of challenges” including “workers returning to offices and vaccinations are prompting many people to take summer vacations.” They are also claiming increased costs due to drivers returning to the road. It never ceases to amaze me how the insurance industry gets their hit pieces on to the front page of supposed financial reporting organizations such as CNBC. They are basically selling us on the idea that their business is in trouble because they have to actually absorb normal levels of risk again instead of the lesser risks they faced during the lockdowns. Wouldn't it be nice if everyone could live a risk-free life the way the auto insurance companies do? It is also worth mentioning that this article from CNBC fails to mention the $24b the auto insurance industry stole from consumers in the form of inflated premiums in 2020. I wrote about this earlier in the week and it is worth checking out. To be clear, the auto insurance industry steals $24b during covid, government does nothing about it, and now they cry that they cannot handle increased risks due to having to return to normal life.