Car insurance premiums go to pre-pandemic prices, could rise even more

El Paso News

EL PASO, Texas (KTSM) — As the country gains back its mobility, drivers are seeing the price of their insurance premiums go up to pre-pandemic times and even higher.

Tim Query, Finance Department professor at New Mexico State University, said that at the beginning of 2020, when the pandemic locked down most of the country, car insurance premiums decreased as fewer people were on the roads.

Since driving habits are going back to where they were, insurance prices are doing the same thing, Query said.

“There are some other non-pandemic-related factors that are affecting the prices as well that could actually conceivably raise prices to go higher than they were before the pandemic,” he added.

These factors include social inflation or growth in liability risks and costs, as well as more expensive car maintenance that comes with new technologies, said Query.

“The average age of a car is now about 12 years old, which is close to if not even all-time high,” he said, explaining that more people might trade in these cars for newer ones, which are more costly to insure.

There is medical care coverage on most auto policies, Query explained, leading to an increase in insurance prices as well.

His advice is to shop around for an insurance provider to get the best deal.

“We see a wide disparity amongst insurance companies as far as premiums go. In fact, recently we’ve seen some companies raise and some lower their premiums, so it does pay off to shop around,” he said.

Query said that safe driving and a good driving record are also good ways to help lower your insurance payments.

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