Auto Insurance Rates on The Rise

1 October 2017
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Category: Auto, Community
1 October 2017, Comments: 0

You’re not alone if you’ve seen your personal auto insurance rates rise over the past few years.  Most carriers have taken rate increases or have filed with the Department of Insurance to get approval for an additional rate increase.  

There are many factors that lead to auto rate increases, but below are just a few of the main reasons contributing to the recent rise across the board:

1. Gas Prices – gas prices decreased substantially towards the end of 2015, which enabled people to drive more often for the same amount of money.  When people drive more often, they are more susceptible to an accident.  

2. Distracted Drivers – even with cell phone laws and the Bluetooth requirements in California, there has been an uptick in distracted driver related accidents.  Many of these accidents are caused when the driver is operating a mobile device, and not fully paying attention to the road.  

3. High Tech Vehicles – Gone are the days of steel bumpers and fender bender proof vehicles.  Most autos now have collapsible bumpers, designed to soften the collision, and high tech cameras integrated into the bumper panel.  This means that a minor tap of the bumper can now cost thousands of dollars to repair. This contributes to both higher material costs and more labor time to fix what used to be considered “minor damage”.

 

For these reasons, as well as others, we are seeing auto rates rise with most carriers in California.  Many experts expect to see this trend continue in the foreseeable future.  At HWP Insurance, we monitor your rates and will align you with the most competitive carrier we have access to.  

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