Have your car insurance rates gone up this year? You may have no tickets or accidents, your cars are getting older and you have good payment history and yet you still experience rate increases. Why?!!
We know any rate increase can be frustrating but there is much going on in the market that substantiates prices going up.
Industry statistics have been provided by Safeco Insurance:
As of 2015, there are nearly 17.5 million cars on the road. The more cars on the road the more accidents there are.
3.148 trillion miles were driven in 2015 which is a 3.5% increase over 2014 and the largest annual increase in 25 years.
Bodily Injury Liability accidents have increased by 3%.
Traffic deaths decreased 22% from 2000-2014. 2015 numbers show a 7.7% increase from 2014!
From 2005 to 2013, the average cost per paid Bodily Injury Liability claim increased by 32.1%.
Drivers are more distracted. In 2014, 3179 people people were killed and 431,000 were injured as a result of distracted drivers. Put the cell phone down!!
Safer vehicles mean more expensive claims. Bumpers with sensors and video cameras cost more to repair and replace. Side mirrors with blind spot monitoring are much more than a simple side mirror.
How can we save money? There are several ways:
Price your insurance out before buying a car - the higher the MSRP, the higher the insurance. Sporty and large vehicles can also be more expensive.
Participate in Telematics. This is a device or an app that allows your insurance company to monitor the number of miles you drive, the time of day you drive, if you press your brake hard, and if you quickly accelerate. The better the driver you are, the more of a discount you get.
Talk to your agent about discounts!
Paid in full
Paperless
Multi-policy
Good Student Discount & Drivers Training
Senior Drivers Training
Carpool and drive less miles
Pay in full discount - some companies will discount your premium if you pay in full for 6 months or a year
Paperless discount - ditch the paper and get an e-bill for savings
Multi-policy discount - combine your car insurance with your home, condo or renters insurance
Do not let other people drive your car - your rates can go up if they are in an accident
Buy your insurance at least 8 days before you need it - sounds a little strange but some companies give an Advance Quote Discount
Education and Occupation - ask your agent if there is a discount for your education level and occupation