Increased Auto Insurance Premiums

Auto Insurance premiums are becoming a significant expense for many people. There are several reasons for the increase in auto rates but there are also several ways to save money.

RATES!
Several factors determine auto rates. Young drivers statistically run the odds of being involved in an accident. The simple fact is that if you have a history of accidents or traffic violations, you are a high-risk driver. You will pay more. Expensive cars cost more to fix or repair. All these reasons factor to insurance carriers rising rates.

Here are a few statistics on distracted driving, driving violations and claims cost to give you a deeper understanding of auto rate increases.

Distracted driving. According to the National Highway Traffic and Safety Administration, 3,522 people were killed by distracted driving in 2021, a 12% increase from 2020.

Driving citations. The 2023 U.S. Auto Insurance Trends Report published by LexisNexis cited major speeding violations were up 20% in 2022 compared to 2019.

Claims costs. The total cost of claims has increased by 35% since 2019 for liability claims and 40% for collision claims, according to LexisNexis.

SAVING MONEY TIPS!

The tips below can help you save money without sacrificing coverage or a top-rated carrier.

1. Bundle your insurance policies: Many of the insurance companies offer significant discounts for having multiple policy type lines such as auto and homeowners’ insurance.
2. Clean driving records: Staying claims and violation free is a good way to keep your premiums low.
3. Driving Apps: Insurance companies now offer programs that run through your smartphone that track driving habits. By using these applications,  you are only helping yourself avoid an increase.
4. Good Credit: Good credit can help you get lower car insurance premiums. Credit scores factor in determining rates, so maintaining a good credit score can pay off in more ways than one.