Like most businesses, the insurance industry is being faced with increasing costs of doing business, which in turn is probably impacting your car insurance costs. You have probably noticed an increase in your premium rate and are searching for answers. There are many considerations factored when determining what you pay, ranging from your driving history to car safety ratings. Read on to find additional reasons your auto insurance rates increased.
Below are Some Key Considerations that May Cause an Increase in Auto Insurance Rates, but Not Limited to:
Increase in Accidents- The NHTSA (The National Highway Traffic Safety Administration) cites a 12% increase in fatalities this past year which is linked to faster driving speeds and distracted driving.
Increase in Vehicle Prices- The prices for cars (new and pre-owned) have gone up significantly since 2021. According to the analysts at Edmunds, new car prices have spiked more than 14% while used car prices have gone up over 27%.
Cost of Inflation- This is no surprise to anyone. Since 2020, Americans are spending at least 7% more for most everything which is the biggest increase in almost 40 years.
Excess Speed- Not only are Americans driving quicker than ever before, but they are also doing it while distracted. Naturally, this is leading to a huge increase in auto accidents.
Increase of Vehicle Parts- Inflation has really been prevalent in the cost of vehicle parts. Auto parts costs have increased to 10%.
Higher Repair Costs- When Covid hit, the economy was faced with labor shortages, not to mention supply chain issues. This resulted in higher repair costs, by as much as 20%. We are still faced with limited supplies and a worker shortage, so it is taking longer to repair cars which means drivers are staying in rental cars longer than ever before. All these added costs are driving up the costs of claims. Thus, an increase in auto insurance rates.
Ways to Save on Car Insurance Premiums
Saving money isn’t easy these days as you well know, but there are ways you can try to put more money in your pocket by saving on your car insurance. It is recommended you contact us at Cameron Group Insurance to look for avenues to which you can potentially save money. We can assist you in every way possible by looking at the following:
- Deductible- Consider changing your deductible to a higher amount to save on your insurance premium. We can provide quotes on different premium amounts.
- Bundling- Consider bundling your auto insurance with your homeowners insurance as a way to save money on your insurance rate.
- Mileage- Review your mileage. If you are driving less than in the past years, we can discuss whether you qualify for a reduction in premium costs.
- And More!
Don’t wait! Contact us today at 845-627-2130. If you have any questions or concerns regarding your auto insurance premium rate, we are here to assist you and are committed to working with you and for you.