Auto insurance companies did something very unusual in 2020: they gave money BACK to their customers. It was an unprecedented action, as you can read here
https://progressive.mediaroom.com/2020-04-08-Progressive-provides-1-billion-to-customers
https://www.insurancejournal.com/news/national/2020/05/01/567180.htm
Auto Owners provided a 15% premium refund to personal auto policy holders while Progressive provided approximately $1billion to its drivers. As much as $10billion in refunds, discounts, dividends and credits were offered by more than 30 insurance companies. With nobody on the road, it made sense and was certainly worth the good PR it generated.
With things on the road back going back to normal, insurance companies are making their usual adjustments to premium. And considering how things have gone so far in 2021, it should be no surprise that many insurance companies are raising auto insurance rates.
Progressive did however offer a reasonable explaination in their latest bulletin to its Independent Insurance Agents:
Multiple factors are causing costs to increase:
- Driving behavior is back to near pre-pandemic levels, and many Floridians are back at work
- Vacationers are flocking to Florida
- A decision by the 3rd District Court of Appeals increased PIP fee schedule payments
- Used car and parts prices are at an all-time high due to semiconductor shortage
- Fewer new cars on the road