This is a question everyone is asking themselves and their insurance carriers these days and they have good reason to. Rates have been increasing steadily in every single state for every driver for over 5 years now and everyone wants to know why? Even people with spotless driving records and no claims are experiencing increased premiums.
A 2015 report showed that people are buying more cars than ever before and in 2015 alone, Americans bought 17.5 million new vehicles.1 This influx of new vehicles on the road is due to lower fuel prices and higher employment rates throughout the country. These new vehicles also contain smarter technology inside so when accidents do occur, it is costlier to replace that tech. Some examples of this new technology are cameras, sensors, and other safety devices in the vehicle.
Cases of distracted driving have also increased 10-fold in the past year and more people than ever are texting or browsing the web while driving. With more people and cars on the road and more cases of distracted driving, the chance of an accident occurring is higher than ever. In fact, 2015 brought the largest single-year increase in driving related deaths since 1966 and the worst part is, the Department of Transportation predicts a 2-year increase of 18% going into to 2017. The increase of traffic related accidents has led to injury costs rising 5-6% over the past two years. All of these factors are the reason car insurance premiums have gone up so much over the past 5 years.2
We here at Trager Reznitsky are committed to making you, our customer, as happy as possible. For that reason, we are always going to try to get you the best policy that fits your unique needs.