James DiLellio Breaks Down the Surge in Car Insurance Premiums on WalletHub

James DiLellio, professor of decision sciences at Pepperdine Graziadio Business School, recently contributed expert commentary to WalletHub on the factors driving the rising cost of car insurance and strategies drivers can use to save.

DiLellio explained that insurance premiums are directly tied to risk transfer from individuals to insurers. “As the average claims increase, from accidents or other issues that the insurance company pays, premiums need to increase to ensure the insurer stays in business,” he noted. Contributing factors include the growing cost and frequency of repairs, higher inflation, and climate events such as hailstorms, wildfires, tornadoes, and hurricanes.

For drivers seeking to lower costs, DiLellio recommended comparing rates across providers, bundling policies, maintaining safe driving habits, and asking about available discounts. He also highlighted that telematics-based policies, which track driving behavior, may provide additional savings opportunities.
While insurance advertisements often promise significant savings, DiLellio emphasized that results vary. “Some insurers may be able to assess your risk better and price their premiums more competitively for your situation,” he said.

Through his expertise, DiLellio underscores how economic, environmental, and behavioral factors intersect to shape the cost drivers face on the road. 

Read the full article here.