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Reasons Auto Insurance Rates Increase and Tips to Help

Blog - Reasons Auto Insurance Rates Increase and Tips to Help - Couple Sitting in the Back of Thier SUV

When thinking about spending money, you probably groan when it comes to bills. There are several other things that you would probably rather spend your money on, like a nice dinner or a vacation. Were you ever curious about your car insurance and concerned by the increase in rates? There are many reasons for the rates going up for car insurance. Here are a few of these reasons and tips to help reduce your annual bill.

Increase in Cars Means More Accidents.

Every year more people receive their licenses which means there are more people on the road. When there are more people on the roads, the likelihood of a car accident happening increases. When there is an increase in accidents, that means there is also a higher chance of injury. And statistically, hospital bills are becoming more and more expensive, as you probably know.

Repairing the Vehicle

With the constant evolution of technology and the upgrades that can be made to cars, the price for repairs can be large. The Bureau of Labor Statistics show that the repairs for a car and the maintenance that is required have been steadily increasing for the past 10 years.

Distracted Driving

There are many distractions in a car. You could be eating, texting, talking on the phone, changing the radio. Anything that can divert your gaze from the road, even for a couple of seconds, can lead to an accident. When a person texts and drives, they increase the likelihood of getting into an accident by 23 times.

Natural Disasters

Natural disasters are something that cannot be avoided but we can be prepared for them. Comprehensive auto coverage can help when it comes to natural disasters because it is included in the coverage. In 2017 Hurricane Harvey devastated the east coast of Texas and Louisiana. In Texas alone, there were 203,00 auto claims due to this event. If natural disasters like tornados, floods, and hurricanes happen regularly, there is a possibility that the auto insurance rates could be increasing in those specific areas.

Uninsured Drivers

With the risk of a car accident always present, when on the road, it is important to have protection in case another driver does not have insurance. You never know if a person has insurance or not and it is better to be safe than sorry. The rates are more than likely to go up if you are in an area that has a high number of uninsured drivers.

How to Lower Your Rates
  1. Keep track of the discounts you presently have. An example would be having a bundle with your home and auto.
  2. Watch the way you drive. When there are no moving violations, drivers can get better rates.
  3. See if you can get a higher deductible. This can lower your rates but also increase what you owe if you happen to have a claim.
  4. Research the next car you buy, specifically on how much it is to insure it. To figure out the cost look at safety scores, how often that type of car is stolen, and how much it would cost on average to repair it.

For any questions about the information in this article, give Myers and Hayden Insurance a call at (260) 486-5255 or email us at hello@myersandhaydenins.com.

 

U.S. Bureau of Labor Statistics. (2017, January 5). Prices for new cars up 5 percent, insurance 50 percent, over last 10 years. U.S. Bureau of Labor Statistics. https://www.bls.gov/opub/ted/2017/prices-for-new-cars-up-5-percent-insurance-50-percent-over-last-10-years.htm.

Beltz, B. (2021, March 31). 100+ Car Accident Statistics [Updated for 2021]. Safer America. https://safer-america.com/car-accident-statistics/.

Winstead PC. (2018, February 16). TDI Reports 670,000 Insurance Claims from Hurricane Harvey. JD Supra. https://www.jdsupra.com/legalnews/tdi-reports-670-000-insurance-claims-90668/.