Auto insurance premiums have been on the rise in recent years, and several factors are contributing to this trend. Some of the most common reasons for rising auto insurance premiums include:
Increased claims frequency and severity: The number of car accidents has been on the rise in recent years, and the severity of those accidents has also increased. This is due in part to factors such as distracted driving, drunk driving, and the aging population. As a result, insurers are paying out more in claims, which is driving up premiums.
Rising medical costs: The cost of medical care has been rising steadily for many years, which also impacts auto insurance premiums. When someone is injured in a car accident, their medical bills can be significant. Insurers must pay these bills, and this drives up the cost of premiums for everyone.
Changes in state laws: State laws can also have an impact on auto insurance premiums. For example, some states have passed laws requiring drivers to carry higher insurance coverage. This can lead to higher premiums for all drivers in those states.
Insurers moving out of state: Many quality insurers are leaving the state, reducing competition and reducing costs. It is always a good idea to have your agent shop for the best possible combination of coverage, price and service.