The impact of inflation on your auto insurance premium

man driving car with passenger

What’s changing?

Inflation is taking its toll and causing prices to increase at the fastest rate since the early 1980s. Most industries are experiencing the effects of rising inflation, and the auto industry is no exception as prices have increased in several areas over the past two years.1

  • New vehicles: +18%
  • Vehicle repair: +13%
  • Used vehicles: +28%
  • Body work: +20%
  • Auto parts: +21%

Supply-chain shortages – specifically auto computer chips – led to 11.3 million vehicles being trimmed from production in 2021, reducing vehicle supply and increasing demand and costs.2

Driving patterns have also changed, and Americans are back on the road. Travel on U.S. roads has increased 10% from January 2021 to December 2022.3 The increase in traffic means more accidents and more costly repairs.

The rising costs to manufacture, purchase and repair vehicles means auto insurance companies have to pay more for claims and repairs. In order to keep pace with these industry-wide price increases, auto insurance rates must also increase.

What’s staying the same?

Despite a tumultuous market, we remain committed to providing you with exceptional value at a competitive price. You depend on your vehicle, and we will continue to help ensure it’s properly protected with coverage designed to meet your unique needs.

We know every penny counts, and we can help you save on your premiums with our discounts and flexible deductible options. Your Horace Mann representative can review your policy and help make sure you’re taking advantage of all available savings opportunities and benefits.

What to expect

Although inflation is causing changes throughout the auto industry and beyond, protecting you, your passengers and your vehicle remains our top priority. Talk with your Horace Mann representative to review your coverage(s) and ensure you’re properly protected for the road ahead.

1U.S. Bureau of Labor Statistics, Jan. 2021 - Oct. 2022
3Federal Highway Administration

The information provided here is based upon industry research and rate data. Horace Mann Insurance Company and its affiliates underwrite Horace Mann auto insurance. The benefits and discounts listed are only general descriptions of coverage and do not constitute a statement of contract. Additional terms and conditions, as described in the policy, must be met for the coverage to be provided. Not all benefits available in all states.

WBTL-0882 (Mar. 23)

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