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 risen in recent years, and the severity of those accidents has also increased. This is partly due to distracted driving, drunk driving, and the aging population. As a result, insurers pay more in claims, driving up premiums.
Rising medical costs: The cost of medical care has been growing steadily for many years, which also impacts auto insurance premiums. When someone is injured in a car accident, their medical bills can be significant, and insurers must pay them, which drives up the cost of premiums for everyone.
Changes in state laws: State laws can also impact auto insurance premiums. For example, some states have passed laws requiring drivers to carry higher insurance coverage, which can lead to higher tips for all drivers in those states.
Insurers moving out of state: Many quality insurers are leaving the state, reducing competition and reducing costs. Having your agent shop for the best possible combination of coverage, price, and service is always a good idea.