Three Reasons Car Insurance Rates Are Increasing
According to a Today Show story, car insurance rates are rising at the fastest rate in 13 years. Drivers are paying on average five to 10 percent more for car insurance. In Georgia, drivers are paying 25 percent more for car insurance while drives in California are dealing with a seven percent increase.
Automobile insurance companies claim the increase follows years of decreasing profits due to three main reasons:
- More Drivers – Drivers traveled a record 746 billion miles in first quarter of 2016. There are more drivers on our roads and we are driving more miles than ever before. One mom spends an average of two hours per day on the road between running errands and taking her children to school and extra-curricular activities. More drivers on the road increase the risk of being involved in a motor vehicle accident.
- More Accidents –During 2015, 38,000 people died in motor vehicle accidents in the United States. Speed and distractions are thought to be a factor in up to a third of all motor vehicle accidents. Distracted driving is increasing at an alarming rate in part due to the technology available today. From smart phones and tablets to GPS systems and satellite radio, drivers have an almost endless number of distractions. Other common distractions include grooming, eating, interacting with other passengers, taking care of children, and objects outside of the vehicle. More distractions create the risk for more motor vehicle accidents.
- More Expensive Vehicles – The cost to repair cars is going up; therefore, insurance companies are raising premiums to cover the expense of repairing and/or replacing wrecked vehicles. According to a statement provided to NBC’s Today Show, Allstate Insurance Company said “Auto repair costs are also increasing significantly due to the technology, materials, and components in newer cars that make them more efficient, more advanced, more attractive, and even safer.” Combined with the increase in the number of motor vehicle accidents and the cost of repairing vehicles involved in crashes, insurance companies claim they must raise rates to cover their costs.
Can You Reduce Your Car Insurance Rates?
The best way to reduce your car insurance rate is to maintain and good driving record. You will pay a higher insurance rate for every collision and traffic ticket on your driving record within the last few years. In addition to a clean driving record, other ways you can lower your car insurance rate include:
- Compare rates from various companies to find the lowest rate. However, make sure the company you choose has a good rating before doing business with that company.
- Consider increasing your deductible.
- Reduce car insurance coverage on older vehicles.
- Purchase your car insurance from the same company you use for your home insurance, life insurance, etc.
- Maintain a good credit rating. Your credit score can impact the amount you pay for car insurance.
- Ask for low mileage discounts and other discounts including anti-theft systems; student drivers with good grades; defensive driving courses; and, loyal customer discounts.
Have You Been Injured in a Fresno Motor Vehicle Accident?
If you or a loved one has been injured in a motor vehicle accident, our personal injury attorney want to help. We represent accident victims in the Fresno, CA and the surrounding Central California Valley areas.
Call Torem & Associates at (888) 500-5000 or use our convenient online contact form to schedule a free consultation.Categories: