Inflation Influencing Motor Vehicle Insurance Premium Increase Says ORINCO

Andrew Roe

Andrew Roe further explained what the most basic motor vehicle insurance package covers and why it is not sustainable to have that customer paying a one hundred dollar premium on the service provided.  According to Roe, while companies have been increasing their motor vehicle insurance premiums since the onset of COVID19, those increases were only a drop in the bucket.

Andrew Roe, Secretary, ORINCO

“The basic required insurance you need on the road to be legal is called the Motor Act Insurance. That is the hundred and fifty you are referring to. What that provides is only twenty thousand dollars for property damage. So, if you run into someone vehicle, knock someone off a motorcycle, run into someone’s house, twenty thousand dollars is all the policy will pay for repairs. On the other side, you have bodily injuries and that policy pays up to two hundred thousand dollars of body injuries, and that is sub-limited to fifty thousand dollars a person.”

Paul Lopez

“Does the increase in premium vary from company to company or is it standard?”

Andrew Roe, Secretary, ORINCO

“So there is kind of for the basic product, the Motor Act Insurance that everyone needs, there is kind of a minimum premium that is charged by all the companies. Again, depending on the driver history, what type of vehicle you have, your age; it could go up from there. For the most part on the liability insurance, so that is the part where you are paying to protect you from injuries or damages you caused to somebody else across the industry, those prices have gone up thirty to fifty percent is the range where it has been. I know right after COVID and we realized inflation was taking place, I think a lot of the insurance companies were doing small increase, five to ten percent, but when you look at inflation of twenty to thirty percent for two years, seven percent is never going to keep up with it.”