The most common question we’re getting in our industry is “why did my rates go up? ” So I figured I’d blog about it. Exciting right!! Well, the short answer, and I know you like short answers, is premiums have gone up because costs have gone up. End of blog. Too short of an explanation? Okay, well if you want more information, keep reading 😉
Did you know that traffic fatalities rose over 10% last year? Yep, that’s what the National Highway Traffic and Safety Administration says. If true, that’s the greatest year over year increase in 50 years. In the Southeast Region, the increase is even worse. Much worse! 15% year over year in our region to be exact. What’s caused this HUGE increase in traffic fatalities? There are several factors to consider but I’ll only highlight 2. Again, trying to respect your time 😉 Here they are:
- Gas prices dropped to a 12 year low in 2016. These lower prices have lead to consumers driving over 3.1 trillion miles. That’s a huge number right? It’s too big of number for us to understand right? Well, all you need to understand is that we’re driving more than ever.
- Drivers are more distracted than ever. It’s an epidemic actually. Texting behind the wheel gets most of the blame but there are so many other distractions in the car now. My dashboard looks like a 747 cockpit. I can’t even figure out how to open my sunroof much less turn off my seat warmer after my buns are properly warmed! These fancy car gadgets take our focus off the road don’t they? You bet.
So now you see that people are driving more, paying attention less, and thus getting in more accidents. Compounding the problem is the sky-rocketing cost of auto parts. Think about it. The rain sensor in your windshield, the sensors in your bumper, the tech in your side mirrors…all this stuff has driven the cost of the average fender bender thru the roof. I know “thru the roof” isn’t exactly hard data but you get the point.
Okay, I’ll stop here. Any more info and you’ll probably be able to pass the state administered Property & Casualty exam! In all seriousness, I hope you now have a better understanding of why auto insurance costs are going up. The best part about doing business with our agency is if you’re unhappy with your policy, including the price, we can “re-market” your account and try to find you something better. Because we already have most of the information we need to do this, this saves you time which SAVES YOU MONEY. #timeismoney
Thanks for reading and I hope you have an amazing day!
Below is a random picture of me wearing my fantasy football championship belt. One of my life’s greatest achievements!