3 reasons for increasing auto rates



While storms and hurricanes certainly dominated the headlines for a while, one issue that has been consistent throughout the year is an increase in auto insurance rates. If you’ve seen this on your policy, and you’re wondering what the deal is with your increasing auto insurance rates (especially if you have a clean driving record), this blog post is for you.

Why are auto insurance rates going up?

There are three primary reasons:

1. Distracted Driving:

The National Highway Traffic Safety Administration (nhtsa.gov) reports that 71% of young drivers have admitted to texting and driving. At 55 miles per hour, the average text message takes your eyes off the road long enough to cover a football field. Do the math and tell me that’s not a serious problem. In fact, the statistics are already telling us it’s a problem. For example, in 2015 more driving-related deaths occurred in any year since 1966. Worse yet, we’re on pace for a two-year increase of 18%.

2. Technology in Vehicles:

A couple of our insurance companies have specifically cited this as a large factor in increased claim payments. The rear of cars used to be tail lights and a bumper. Now they have backup sensors, cameras, kick-activated tailgate sensors, etc. In 2005, a Ford side mirror cost $845. In 2015, it cost $1,349. Again, think about the turn signals that are now inside mirrors along with blind spot warning lights and mirror defrosters. That’s a lot more technology in the same amount of space.

3. Health Care Costs:

I’m sure you’ll agree that medical costs are significantly higher than they’ve ever been. Therefore, an accident that has a bodily injury component to it has a much higher overall claim cost than it did just a few years ago. I think you’ll also agree that auto insurance rate increases haven’t been close to how much health insurance rates have gone up recently. Again, you can do the math on that and can see where the auto insurance industry might be falling a tad short.

While I certainly understand the frustration that occurs with auto insurance rate increases, I’m not necessarily advocating shopping your insurance around because you’ll lose out on any loyalty discounts you’ve accumulated with your current insurance company. Plus, if you’ve been claims-free with your present company for a while, they might be more lenient on you should you have an accident in the future.

Increase in Rates?

Your best bet is to speak with your independent insurance agent or give Noyes Insurance a call to discuss the best way to handle the increase in your NH car insurance rates. That way you know the advice you receive is specific to your specific circumstances, insurance history, and the options available to you. If getting a new quote from a different carrier ends up being the best option, we’ll contact top-rated carriers for your to make comparing new auto insurance quotes, hassle free.

Post authored by Marc McNulty. Originally published November 17, 2017. View original post at: https://wp.me/p1Iv7E-2xu

Products underwritten by Central Mutual Insurance Company and affiliated companies.
Copyright © 2017 Central Mutual Insurance Company. All rights reserved.