With Auto Insurance Costs On The Rise, Know How To Get The Best Policy At The Best Rate
If your last auto insurance bill came with a little sticker shock, it may be time to take advantage of a highly competitive insurance marketplace and do some smart shopping for a new policy, according to the Insurance Information Institute (I.I.I.).
Over the last two years, auto insurance costs have risen on average about 10 percent, according to the I.I.I. Why?
- A better job market: More people working means more people driving—and that means more accidents. Indeed, motor vehicle crash fatalities rose 8 percent from 2014 to 2015 according to the National Safety Council, the largest year-over-year percent increase in 50 years.
- Higher speed limits: Since 2012, 12 states have raised their speed limits to 70 or 80 mph—and as high as 85 mph in the case of Texas. In just one of those states, Ohio, a study found that crashes jumped by 19 percent in the two years following the change.
- More expensive claims and insurance related costs: Quite simply, people are driving more expensive cars. In addition, medical costs, litigation costs and the cost of auto repair work continue to rise faster than prices overall.
“Don’t be one of those statistics,” said Jeanne M. Salvatore, senior vice president and chief communications officer at the I.I.I. “It’s very important to take driving seriously—not only will it keep you and your passengers safer, it can also help keep down the cost of your auto insurance.”
Your insurance premium is based on a variety of factors, including your driving record; how much you use your car; where it is parked and where you live; the type of car you drive; your age and gender; your credit score; and the type and amount of coverage. Understanding these factors can help you get a better deal on your policy.