What are the car insurance companies and what are they paying for?
A new car insurance survey has found that some car insurers are paying out more than they are getting in premiums, with one insurer reportedly paying out a record-high $13.6bn for the next five years.
This is according to data from insurer Patterson Greenfield.
The latest report from the insurance company found that car insurers were paying out an average of $12.6 billion in premiums for the coming five years, up 10% on the previous five-year period.
The insurance company also said that car insurance company rates were the highest in six years.
The report is in line with other recent research.
In March, the Insurance Institute for Highway Safety (IIHS) released data showing that the average premium for a 2017 vehicle would be $10,200.
The IIHS said the average monthly premium for 2017 was $3,945.
The average annual premium for 2016 was $4,919, the last year for which data was available.
The institute said the new report shows that insurance companies have been trying to manage their costs.
“The average premium has gone up in every year since the start of the insurance industry in 2008, which is the most recent year for the IIHS,” the institute said.
Patterson Greenfield said it was the “first time in four years we’ve seen a premium increase of more than 10% in the past five years”.
The institute noted that some insurance companies were offering higher premiums for certain types of vehicles.
“Insurance companies are trying to reduce the amount of coverage they offer, and they’re also taking some measures to try to manage premiums and protect their brands,” the IISS said.
It said there was also “an increasing emphasis on protecting the brand of insurers” and said it would work with companies to make sure that these measures were “not abused”.
Patterson said it planned to release the latest data next week.