A recent 3-year study from the Insurance Research Council shows that auto physical damage insurance claims have increased substantially in the last few years. The study looked at over 200,000 claims to identify different patterns in auto physical damage insurance claims. The study showed that the average payments increased 4 percent over the study period. The Consumer Price Index for maintenance and repairs grew 2 percent.
Increased auto damage claims are a common reason why auto insurance costs continue to rise. Analysts point out that vehicle technology continues to evolve, making it more complicated to assess issues regarding […]
With the exception of a few states, such as Virginia and New Hampshire, auto insurance coverage is mandatory across the U.S. For this reason, a majority of American car owners carry auto insurance, which costs about $1,400 annually on average, according to a recent study by Business Insider. The actual cost of your auto insurance coverage will depend on various factors, including, among others, your driving history, gender, age, type of car, and the amount of coverage you need. For example, teen drivers pay higher premiums since insurance carriers generally perceive them to be high-risk motorists.
Increasing auto insurance premiums only adds to the already existing struggles in uncertain economic times. But you can always take steps to lower costs. Here are various factors that contribute to rising auto insurance premium rates across the nation.
1. Recorded Driving Behavior
a) Miles Driven:
The more people drive, the more their insurance rates will increase. A 2016 article in the Washington Post cited an AAA report that Americans were driving more due to cheaper fuel and other reasons. More miles imply an increase in the chances of an accident, which raises the insurer’s […]
If you have a car, buying auto insurance is important. However, there are several myths about auto insurance that may be misleading. To help you understand the truth, here are a few common myths about auto insurance – clarified.
A Speeding Ticket May Lead to Higher Insurance Costs
It is a misconception that your auto insurance cost will increase after you get a single speeding ticket. Most states don’t allow insurance companies to raise the premiums after a minor violation. You will need to avoid significant offenses like reckless driving, driving in a carpool lane without reason, or […]