Paul Dreher Director of Personal Insurance View Bio

One issue that has been consistent throughout the year is an increase in auto insurance rates. If you’ve seen a rate increase this year and have wondered why (especially if you have a clean driving record), this blog post is for you.

Why are rates going up? There are three primary reasons:

Distracted Driving:

The National Highway Traffic Safety Administration reports that 71% of young drivers have admitted to texting and driving. At 55 miles per hour, the average text message takes your eyes off the road long enough to cover a football field. Do the math and tell me that’s not a serious problem. In fact, the statistics are already telling us it’s a problem. For example, in 2015 more driving-related deaths occurred in any year since 1966. Worse yet, we’re on pace for a two-year increase of 18%.

Technology in Vehicles:

A couple of our insurance companies have specifically cited this as a large factor in increased claim payments. The rear of cars used to be tail lights and a bumper. Now they have backup sensors, cameras, kick-activated tailgate sensors, etc. In 2005, a Ford side mirror cost $845. In 2015, it cost $1,349. Again, think about the turn signals that are now inside mirrors along with blind spot warning lights and mirror defrosters. That’s a lot more technology in the same amount of space.

Health Care Costs:

We’re sure you’ll agree that medical costs are significantly higher than they’ve ever been. Therefore, an accident that has a bodily injury component to it has a much higher overall claim cost than it did just a few years ago. Auto insurance rate increases haven’t even been as close to how much health insurance rates have gone up recently. Again, do the math on that and see where the auto insurance industry might be falling a tad short.

Contact Lawley today for inquires regarding auto rates — we always make sure to get you the right insurance program for your unique needs. We have a dedicated team of professionals who will take care of you and your family with their 100 years of combined experience.