Auto assurance costs continue to soar, with the average annual premium for safe drivers nearly $2,000. Root assurance top executive Alex Timm joins Wealth! to discuss the factors driving these higher assurance costs.
Timm highlights that assurance premiums have increased by over 20% year over year, making it “a top-five customer expense.” He attributes the cost pressures to several factors, including increased parts costs, technologically advanced vehicles, and a shortage of labor. Timm notes that “there’s a huge amount of demand in the system” for assurance companies but a limited supply, fueling the upward cost trends.
Regarding electric vehicle and self-driving car trends, Timm emphasizes the need for consumers to adapt to driving these vehicles. He explains that it takes time to learn how to operate such advanced cars, potentially leading to changes in driving behavior, which could contribute to higher premiums due to “underlying risks.”
To combat rising assurance costs, Timm advises consumers to shop around for assurance premiums and avoid the “loyalty penalty” to ensure they get the best possible price.
About Yahoo financial:
Yahoo financial provides free stock ticker data, up-to-date news, investment mix management resources, comprehensive sector data, advanced tools, and more information to help you manage your financial life.
– Get the latest news and data at financial.yahoo.com
– Download the Yahoo financial app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
– Follow Yahoo financial on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/firm/yahoo-financial
Disclaimer:
If you own the YouTube channel related to this video and do not want it to be featured here, you can contact us through our contact page. We will gladly remove it without questioning your reasons.