We know the feeling, after all, we get those same envelopes, with that same increase in our auto insurance bill as well. We wanted to share some information with you that may help. While we can’t change how rates are determined – we can; help educate you on the “why”, let you know the advantages of the policy you have and the company you have it with; review your needs and see if another one of our carriers may be a better fit and let you know the downsides of switching carriers – do you lose discounts when you switch? Are there discounts now you may be eligible for and not getting? Please give us a call, we’d love to talk it about it with you. 253-447-8006 or feel free to contact us to set up a convenient time to discuss your situation.
What affects my rates?
Let’s just boil this down, for the most part it will help explain some of the factors and considerations into rates.
The area in which you live – more people means a higher likelihood of accidents.
Age of driver – Experience driving or lack of it
Type of Vehicle – Costs to repair or replace have grown tremendously
Your driving record – Need I say more?
Your credit score – While it may seem like the issues aren’t related, statistics have indicated they are and insurance is largely driven by (no pun intended) statistics.
Some more insurance rate factors:
In a study done on minor front end damage for an entry level sedan of the same make and model for the model year 2014 and 2016, the 2014 costs came in at $1,846 while the 2016 was $3,551 – almost double! Now throw in all the technology cars have – yikes! Although, I do love a car that will parallel park for me!
Increase in payouts and severity
What? With all the safety features aren’t those things getting better? Sadly, no – one factor is drivers circumventing safety features and the other, far more significant factor is, distracted drivers which is on the dramatic increase leading to more severe accidents.
1 in 4
The number of car crashes that involve cell phone use (National Safety Council Estimate)
32.1%
The rise in the average cost of bodily injury claims between 2005 and 2013 (Insurance Research Council)
70%
The number of drivers that admit to talking on cell phone while driving (AAA Foundation Report)
More information….
Many insurance companies have already taken rate increases and there are likely to be more. If you want to read some terrific articles with detailed information on this topic, head to google and enter – auto insurance rate increases. This will definitely give you enough reading material to answer your questions or maybe just help you nod off….