Why did My Auto Insurance Costs Go Up Even When I Didn’t File a Claim?

Auto insurers charge their insurance policies based upon the many elements that impact the price. Some variables, however, tend to be more expensive year over year. Your actions as a policyholder can increase or decrease your costs based on the scenario. For instance, adding a vehicle or driver to your insurance may increase your costs. On the other hand, removing a driver or car may decrease your costs.

However, geometric shapes besides your control can also cause insurance rates to increase, such as the crashes other drivers get into. The amount of damage and the expense of these accidents is a factor in every state's auto insurance prices. For example, drivers who live in the largest cities pay much more. The more automobiles in a region, the much more likely it is that car accidents will increase. Additionally, the speed limits on roads are rising because of these factors. Specifically, the driver error causing most accidents occurs at high speeds. Distracted driving is a problem everywhere. In large and small cities alike, people are to blame for more crashes due to texting, talking, or otherwise being occupied while riding. 

Car insurance also covers the wreckage that results from as well as vehicular or personal property losses in a crash. Medical and auto body repairs, as well as legal costs, have increased at a faster rate than the rate of inflation in the past several years.

More drivers are driving to and from work during a period when the unemployment rate decreases, thereby increasing the incidence of motor vehicle collisions. In addition, these professionals are able to purchase more comfortable and safer vehicles. As a result, the accident rate rises. Most of these vehicles possess an expensive array of high-tech parts, making them more expensive to repair or replace once damaged.

The auto insurance industry is fully committed to reducing United States auto crash rates. They fund the Insurance Institute for Highway Safety (IIHS), support efforts to reduce distracted driving as well as impaired driving. Additionally, they finance discounts to auto policy holders who participate in defensive driving classes or take less risky driving routes.

It is possible to take some proactive measures to reduce your auto insurance costs. Talk to your insurance specialist to ensure you're receiving all of the discounts to which you're entitled to. And if that avenue isn't fruitful, do some research to compare insurance policies available from various providers to locate one that match your budget and particular needs.