. And remnants of that storm also recently caused severe flooding in the northeast.
As a result, many people have had not only their homes damaged, but also their cars. With an increase in claims due to the auto damage caused by the storm,
warned of rising car insurance and home insurance rates due to hurricanes, and claimed it could even impact states not hit hard by the storms.
The report indicated that residents of states hit by recent hurricanes and nearby states could expect to see their premiums rise as insurance companies pay out billions of dollars in claims.
In fact, USA Today said there were $20 billion to $25 billion in estimated U.S. insured losses due to Hurricane Harvey and $40 billion to $60 billion from Hurricane Irma in 2017. According to
, the recent Hurricane Ida could see $15 billion to $30 billion in claims.
As USA Today reported back in 2017, neighboring states to those hit by the hurricanes that year stood to see rate increases in car insurance because some insurers calculate car insurance rates regionally.
The report pointed out that insurers actually can’t increase premiums in random states to make up for large payouts to hurricane victims—but it’s still possible for a ripple effect to occur.
But it’s not just severe hurricanes that cause car insurance rates to rise. According to USA Today, things like distracted driving incidents across the country also help contribute to car insurance rate increases.
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