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4 Reasons your Auto Insurance Premiums Rise

It has happened to everyone. They get their renewal in the mail and can't believe their eyes. They have had no wrecks, no tickets, no changes and still an increase in their premium. When auto insurance companies take losses due to insurance claims, they will adjust everyone's rates to return to profitability. From distracted driving to an abundance of hail storms, here are some of the reasons your rates are going up.

  1. Increase in Auto Insurance Claims-- Insurance companies have seen a significant spike in claims over the past few years. They have had to pay out large sums of money for bodily injury, collision and damage liability claims. Most car crashes are coming from distracted drivers, with Cell Phones to be the biggest distraction in any car. Texting and Driving has been the cause of 25% of all accidents in the US according to the National Safety Council. If there are more wrecks you will see an increase in your auto premiums.

  2. Skyrocketing Medical Expense--Medical Expense is a big part of any auto liability policy. From 2008-2017 the cost of an emergency room visit in the US has increased by 174%. So to keep up with the rising cost of medical treatment, policy premiums have had to increase.

  3. Lots and Lots of Hail-- When it is hail season you know it. People have invested in those inflatable car protectors (it's called a garage, no my car can't fit in mine either) to help stop hail from damaging their vehicle. It is not a fun claim to go through, for your auto or your home. In 2019 14 separate Billion dollar natural disasters hit the US. With the increase of these natural disasters, you guessed it, your rates may go up.

  4. Sophisticated Auto Technology--Does your car have stop assist? Does it keep you in your lane? Does your vehicle have blind spot warning? If so, it is more expensive to fix. Whereas a bumper 10 years ago might cost $1000 to fix. It can be 3-5 times more expensive depending on the technology you have on your vehicle. New cars cost more now-a-days, much of that is to all of the technology that they put in it. It is safer, which is a plus, that safety comes at a cost to the car as well as your insurance premium.

Some of the companies I work with will give you discounts for some types of safety equipment you have on your vehicle. Remember The Goff Insurance Group is an independent agency. We can shop your policies for the best deal at the best coverage. Lots of insurance premiums are like a wave of high sometimes and lower others. Let us guide you to the best deal for you and your family.



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