Many insurers are boosting premiums by 6% to 8% while some are asking for double-digit increases, according to industry executives and analysts. The rising rates are an example of inflation leading to more price increases as businesses try to compensate for higher costs.
After having a stellar year when lockdowns kept many drivers off the roads, insurers struggled in the second half of 2021. Auto insurers posted dismal fourth-quarter results, and laid out plans to raise rates. During 2020, many insurers gave consumers rebates and some modestly reduced rates.
Car and home insurer
Allstate Corp.
is raising rates by an average of 7.1% across 25 states, its executives said on an earnings call, and more increases are ahead.
“We are continuing to go at a very fast…
