Why Are Auto Insurance Rates So High?

As you have undoubtable noticed, auto insurance rates have been rising significantly in recent years. According to the latest data, auto insurance rates have increased by nearly 26% for full coverage since the start of the pandemic, and the trend is expected to continue into 2025.

Various media outlets have reported this trend, attributing the spike to several different factors, including inflation, supply chain disruptions, and natural disasters contributing to this trend. Some even acknowledge that increased accident rates, which lead to higher claims, are also a factor in increased rates. What they are not telling us is why we are seeing an increase in traffic accidents. We are simply being told that people are just driving less safely post-COVID.

The media's explanations ignore the obvious.

Years ago, when we were actively opposing the legalization of so-called "recreational" marijuana in Illinois, we warned people that having more stoned/buzzed/inebriated drivers on the road will inevitably lead to more traffic accidents. Our warnings were based on what we were learning from other states that had already legalized pot, specifically Colorado. Legal weed would mean an increase in traffic accidents.