I have never seen the auto insurance market the way it is right now. I have seen insurance companies lower and raise rates but it is usually done in a fairly controlled manner. That is, companies see more claims and they raise rates. And then after they become profitable again, they try to gain market share and lower their rates again. But this time is different. The claims costs that insurance companies are seeing is unprecedented. This is largely the case because inflation has hit car repairs especially hard. And with the costs of used cars going up, insurance companies are paying a lot more for total loss vehicles. And then there is the unexpected increase in the number of accidents and claims. Many thought that after COVID, people would drive less and there would be less claims but it has not worked out like this. It’s hard to say exactly what is going on but Infinity provides an interpretation of what they are seeing in this video (LINK). In the end, auto insurance companies have had to respond by adjusting their rates, limiting their payment options, and toughening their underwriting guidelines. It’s hard to say how long this will last but it will likely continue until the end of this year and beginning of 2023.