Why are my rates going up?

Recently, a lot of people find their insurance companies have been raising the rates on their auto insurance.This has caused a lot of grief among vehicle owners. But why have the rates on auto insurance gone up?

The very premise of insurance is based on the concept of sharing risk and shouldering costs. While an individual’s driving behavior or circumstances may not lead to an increased rate on auto insurance specifically, there are several factors existing that impact everyone. Here are a few mentions.

Distracted Drivers

A lot of drivers do dangerous things when they’re behind the wheel. One often forgets how harmful it is to talk or text on mobile phones while driving. In-vehicle navigation systems are also quite distracting at times. People also tend to eat and drink while they’re driving. All of this poses harm not only to the driver but other people on the road as well. A survey released by the Washington Traffic Safety Commission recently showed that distracted driving deaths are up by 32% in Washington. In all of the U.S, more than nine people die every day and 1,153 are injured in crashes caused by distracted drivers.

Increasing Traffic

With a bigger population comes more traffic jams. This is no big surprise. In 2015, increased population with higher employment rates and less gas prices led to the possibility of vehicles traveling up to 653 billion miles on the Washington roadways. This also increased freeway congestion. When there are more cars on the road there are bound to be more accidents.

Costs are rising

Today we pay more for just about anything than earlier generations would have paid for. In fact, the cost of repairing vehicles is also much higher than it used to be. With newer advanced cars comes technology, like forward collision warning, backup cameras and blind spot detection. These are all quite expensive to repair.

Numbers of claims have increased

If you take a look at the statistic provided by the Insurance Research Council Point there is an increasing severity and frequency of auto insurance claims.

The good news is you can lower your auto insurance premium. Here’s how!

Apart from driving carefully and observing traffic rules, speed limits and avoiding accidents and violations, there are several other ways you can lower your auto insurance premium. Choose to work with an independent insurance agent. They can usually find you the best combination of coverage and price. They can help you identify premium discounts from a number of variables and offer a personalized solution. Next, choose a higher deductible no matter how tempting it is to choose a lower deductible. Try to enroll in a company’s telematics program. There are several insurance company telematics programs. They will collect information on your driving skills and patterns. Safe driving habits will help you in the long run. Finally, bundle and save. Bundle your insurance with one company only. This not only simplifies streamline claims, billing and eliminates coverage gaps but also ensure you receive exciting multi-policy discounts.

If you’re looking for reliable and solution-oriented insurance options in Bellevue WA, you can trust in Insurance Connections Northwest. We provide value and protection that will steer your future family’s future in the right direction.