Why does my car insurance keep going up, even though I have had no claims?
Before I attempt to answer that question let me say that Cornerstone Insurance is an Independent Agency. We represent many great companies and have choices to offer our clients. We are constantly monitoring our clients’ premiums and checking with the companies we represent to do our best to offer you competitive rates. If your rates have increased, give us a call and we will be happy to check for you.
Having said that, rates are going up — with all companies. We have heard that some companies are taking rate increases up to 20%. In our office the rate increase seems to be more in the 5-10% range but in some cases we definitely have seen double digit increases, even for safe drivers.
What is causing these increases? A recent article by Forbes Magazine stated that in 2016 the top five insurance companies by premium written paid out $107 in claims for every $100 received in premium. State Farm who is the largest writer of auto insurance in the country announced that they lost 7 Billion on auto insurance in 2016.
There are many factors but here are the major causes that were shared with a group of select agents that I was priviliged to be with at Safeco Insurance Home Office in Seattle.
Distracted Driving: Texting, checking email, talking on the phone, listening to our favorite tunes on our cell….According to a AAA poll, 94% of teen drivers acknowledge the dangers of texting and driving, but 35% admit doing it anyway. Each year over 330,000 accidents are caused by texting while driving, leading to severe injuries.
More Costly Accidents: The insurance industry calls this severity. The severity of car accidents has been trending upwards since 2011. Contributing to that trend has been a steady rise in the number of fatal accidents. Fatal accidents rose 6% in 2016 to the highest level since 2007.
Newer Car Cost More to Repair: Cars today come equipped with great computer gadjets and safety features. The windshield alone looks like a crime scene computer. There are sensors and computers all over the car. A windshield that used to cost $300 to repair now can cost over $1,300. That is just one part. AC units that are computerized, cost to reset computer, side view mirrors, and bumbers are just a few of the high tech, but high repari cost features on newer cars today. Higher repair costs leads to higher premiums.
There are other factors such as extended bad weather, low interest rate environment to name a few.
The Question Is: What can you do about a rate increase?
Let us help. As I shared at the start of the article increasing rates are not just limited to your company. It is widespread. Give us a call to take a look at your policy, the coverage you have, and the individual factors that affect your cost. One of the keys to keeping your costs low is making sure you are getting all the discounts you can. We are happy to go over all of this with you including giving you a comparison with other companies we represent.
Auto rates are increasing. We are committed to helping you find the best value that is available to you. The right coverage to protect you (which is why you have insurance), the right price, and service that exceeds your expectations. Thank you for your business and give us a call if we can help.