Over the past two years, U.S. auto insurance companies have seen private-passenger loss costs rise sharply as insurers receive more, and costlier, claims, according to the Insurance Information Institute
This will result in rising auto insurance rates.
According to the Insurance Information Institute, there is an alarming increase in crashes and claims reported. Frequency is increasing including collision severity and personal injury claims.
Fatal crashes are also rising. In 2015 fatal crashes are rising at 7.2 percent.
Also the cost to repair vehicles are up since more vehicles are expensive computers and more expensive parts than in the past. With many parts being recalled, it is taking longer to find good parts so the cost of rental cars coverage are up.
Consumers can expect an average of 5 to 10% annual increase on their auto insurance.