Many of you may have noticed that car insurance has increased over the past year to 18 months. This includes drivers with a spotless driving record. Data and research have shown that these increases are expected to continue through 2018 into 2019.
The price for auto insurance from 2012 – 2017 has increased by 21.5%. This is the largest 5-year price increase for auto insurance since the early 1990’s. Consumers are continuing to see an increase in the rise of their premiums due to insurers paying out more money in claims. Collision claims rose by 11% and comprehensive claims increased by 25% for a 2-year span ending in June of 2017. Furthermore, this data was pulled before the more than 250,000 vehicles were damaged by the Hurricane Harvey flooding.
One of the biggest reasons for the increased cost for auto insurance has been the enlarged cost to repair certain items on vehicles. Some of these items would be:
- New safety features (sensors)
- Side mirror assisted driving sensors
An example of this would be the cost to repair a 2016 IS 250 Lexus bumper with a distance sensor. This will run you around $2,800. The same model car, but a 2014 version, without the distance sensor, will cost you around $1,200. Even replacing a windshield has increased in price. This is due to the fact that most cars now have cameras behind them and the cameras need to be calibrated when the windshields are being replaced. The costs to fix cars has increased, and the cost of auto insurance is showing it is following that course.
Drivers who are distracted have shown to contribute to the rise in auto insurance claims. With an outstanding economy there are more people who are able to afford cars, which means more drivers on the road - more drivers, more traffic, more accidents! Also, data has shown that states like Denver who have legalized marijuana continue to see an increase in collision claims (above the average per state).
To try and decrease the sting of rising auto insurance rates, ask your insurer if your available for some of the following discounts:
- Low annual mileage
- Safe driver habits
- Participating in a data-tracking program
- Bundling insurances
If you have any questions on auto insurance, please feel free to reach out to us at Safe Harbor Insurance. Click Here to see how we can help you with auto insurance costs.
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