Why do auto insurance rates increase? Even when I have a perfect driving record.

Why do auto insurance rates increase? Even when I have a perfect driving record.

Jul 21 2020

Why do auto insurance rates increase? Even when I have a perfect driving record.

Have you noticed that auto insurance rates seem to increase every year? Unfortunately, it is the case for nearly every insurance carrier. While insurance agents don’t set insurance rates, Bearingstar can help you understand some of the elements carriers consider when determining their rates.   At its most basic form, the premise of insurance is sharing risk and shouldering costs with others.

Even if you believe your individual circumstances or driving behaviors may not have changed, all of us are impacted by bad drivers, the rising costs of repairing vehicles, and more drivers on the road. These rate changes are not unique to any one insurance company or geographic area, these premium increases are impacting drivers across the country.

We get it, this can be frustrating, but your local Bearingstar agent is here to look at your policy to see where and how you can potentially save money. To help you further understand why you may see an increase in your auto insurance, we put together the following insights:

Miles driven!

According to the Federal Highway Administration, Americans are driving more miles than ever before, as the number of miles driven increases, so does the risk of accidents!

Technology

While advanced technology such as backup cameras and self-parking features were all created for convenience and safety, it does come at a steeper price for all drivers. Although this type of vehicle technology was created to try to reduce the number of accidents caused by human error, it has also made common and previously inexpensive repairs—such as bumper replacements—more expensive, increasing the potential losses for insurance companies.

The people listed on your policy

Your family members listed on your policy can also impact your insurance rates. If someone gets into an accident or you have a teen driver, there is a high chance your insurance policy premium will increase.

Distracted Drivers

Another contributor to insurance rate hikes is the increased frequency in car crashes attributed to distracted driving—caused in large part by more people using their phones while driving and more complex car consoles.  Distracted driving has become more prevalent with the rise of smartphone use and internal auto technology – 3,166 people were killed in distracted driving incidents in 2017, according to the National Highway Traffic Safety Administration.

While we can’t stop auto insurance rates in Massachusetts and Connecticut from climbing, Bearingstar can help you be sure you’re taking advantage of the discounts you may be eligible for.

  • Multi-Car discount – lower your premium when you insure more than one car with the same carrier
  • Combining home/condo/renters insurance and auto insurance
  • Paid-in-Full Discount – you can save 6% or more when you pay your premium in full
  • Good Student Discount
  • Accident Prevention Course Discount
  • Employee Group Programs

Other ways to reduce your auto premium can also include:

  • Buying a used vehicle
  • Raising your deductible
  • Increasing your credit score
  • Try to remain accident and moving violation free

Have more questions about auto rates?  We are happy to help!  We work with many insurance providers to help you find the best coverage at a competitive price. 

We know the roads you drive because we drive them too. Our agents understand your situation and concerns and are here to help you today!  Contact us for a complimentary quote!

Sources:
December 2019 Traffic Volume Trends; Policy and Governmental Affairs Office of Highway Policy Information Department of Transportation. https://www.fhwa.dot.gov/policyinformation/travel_monitoring/19dectvt/page2.cfm
Distracted Driving in Fatal Crashes, 2017; NHTSA’s National Center for Statistics and Analysis. https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/812700
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