ElisaRiva (CC0), Pixabay

Does it seem like your auto insurance rates just keep going up and up? Do you feel like you are a safe driver that never gets into an at-fault accident or gets tickets, yet you are rewarded with rate hikes? The reality is the cost of insuring your vehicle is on the rise, even for good drivers. There are still deals to be found, but you have to work hard at finding them. Here are a few reasons why rates are escalating each year.

Cars are More Expensive to Repair and Replace

Have you looked at new car prices lately? From Tesla’s to the popular Ford F-150 truck, the cost of automobiles is on the rise. Many new vehicles can cost well over $50,000. There is a direct correlation between the value of a car and the cost of insuring it. The more a vehicle is worth, the higher the premiums will be. This is one of the main reasons why insurance rates have gone up almost every year.

Most cars today have advanced features like dual airbags and sophisticated electronic systems that can be very expensive to repair. Also, the cost of labor has gone up over 2% in the past several years, contributing to higher repair costs. The increase in claim costs is one of the main factors that has pushed up premiums.

Many people don’t think about the cost of insurance when shopping for a new car. For those on a tight budget that can barely afford a car payment, rates should be taken into consideration before a vehicle is ever purchased. This means doing some good old comparison shopping and seeing which vehicle you are interested in has the cheapest rates, along with what company.

This can sound time-consuming, but comparison sites like Alliance United Insurance can let you compare up to 10 quotes in around five minutes. So, if you are looking at two or three different makes and models, find out which one is cheaper to insure. This can add up to thousands of dollars in savings over the course of owning your vehicle.

people talking, father, mr
2704056 (CC0), Pixabay

Distracted Drivers are Costing Everyone

Have you ever been at a green light and the car in front of you just sits there? You look up, and the person is lost on their smartphone. By the time they realize it’s time to move, the light turns red. Smartphones and driving just don’t go together, ever. This is why lawmakers in every state are scrambling to address this ever-growing problem.

From teens to elderly drivers, distracted motorists are getting into accidents at an alarming rate. In fact, the biggest culprit of teen deaths are automobile accidents, and many of these stem from distracted teen drivers. One recent report stated that almost 4,000 people are killed each year by distracted driving and another 395,000 people injured. These stats should make everyone stop and put down their cellphones before getting behind the wheel.

Insurers have had to raise rates to keep up with the claim costs stemming from all the distracted driving accidents. They pass on these costs in a way of higher premiums. This makes it all the more important to comparison shop to make sure you get the best deal possible.

There are More Vehicles than Ever

Does it take you an hour just to go 7 or 8 miles to work each morning? Major cities like Los Angeles and San Jose are flooded with cars and congestion. The more vehicles crammed into one area means more accidents. This is a big factor that has caused automobile insurance rates to go up each year. It sounds simplistic but more vehicles on the road equate to more accidents. In California alone, there are about 15 million registered automobiles.  That’s more cars on the road than most countries have.

It’s just the law of numbers. With more congestion on the roadways, along with more distracted drivers, many people are getting into rear-end accidents by not paying attention in heavy traffic. These avoidable accidents cause rates to go up for everyone.

car accident, fire, street
vainodesositis (CC0), Pixabay

Mother Nature

In the past few years, there has been a slew of weather-related events that have damaged millions of vehicles. Flooding in Houston alone resulted in over one million vehicles being totaled. Mother nature does indeed have an effect on car insurance rates. From tornadoes to wildfires, to hurricanes, these events can cause rates to go up for all drivers.

How to Get Cheaper Rates

While Rates have been going up the past several years, there are steps you can take to lower your rates. If your vehicle is more than 8 years old, it’s probably lost 60% or more of its value. You can probably be safe to drop collision and comprehensive coverage if this is the case. This will help lower your rates considerably. The next step is to shop around for the best deals. The best rates can usually be found online. Just fill out a few quote requests from leading direct insurers, and you can save hundreds per year. Now you are ready to lower your rates.