Progressive car owners may have to pay more for insurance coverage when they don’t have a driver.
But not for many.
A study published Monday by the Insurance Institute for Highway Safety found that car insurance premiums on the cheapest policies for 2019-20 would be about 40% higher for those with an auto license.
“We were surprised by the findings, as insurance companies have long been concerned about the growing demand for driverless vehicles and the growing cost of driving,” said John B. Huggins, senior vice president of policy and research at the institute.
According to the study, a typical policyholder pays $1,200 for a standard policy, which covers accidents, collisions, medical expenses and property damage. “
It’s hard to understand why rates for most drivers would increase for less than a dollar per month.”
According to the study, a typical policyholder pays $1,200 for a standard policy, which covers accidents, collisions, medical expenses and property damage.
On the cheapest plans, a driver would pay $1.40 a month for a policy with no collision coverage, which is similar to the average $1 per month that insurance companies charge for collision coverage.
The study found that the cost for driver’s licenses, license plates, insurance and collision coverage would rise for those without a license.
Insurers are still trying to figure out the optimal rate for car insurance policies.
The average auto insurance company rates drivers on average a $200 deductible, $200 policy premium, $100 in collision insurance and $40 for a driver-only policy.
The cost of the cheapest policy would rise to $1 for $1 a month, or $3.40 for $100.
Insurance companies have been trying to make insurance more affordable by lowering the deductible and raising the premium to help drive down the cost of insurance.
Insurance companies are also experimenting with driverless car technology.
For example, in California, a new state law requires drivers to wear a helmet when driving, and some insurers are moving to include driverless vehicle technology in their policies.
The Insurance Institute’s Huggin noted that the industry needs to keep working on new technology that will keep rates down, but he said the research showed that the cheapest car insurance policy is likely to be more expensive for many people.
The study analyzed insurance policies on the National Association of Insurance Commissioners (NAIC), the nation’s largest car insurance association.
The NAIC released its data on auto insurance rates last month.
The data showed that most drivers in 2020 would pay about $1 more per month for car coverage than they would for their current policies.
However, for some, that increase would be much higher.
The most expensive premium for 2019 would be for a $2,800 policy, according to the NAIC.
That policy would be worth about $5,300 a year, or about $13,000 a year.
The most expensive policy would cost $5.35 for a 20-year policy, or more than $11,000.
For a 40-year plan, the average cost would be $8,000, or nearly $16,000 per year.