Car Insurance Rates Going Up: What You Need to Know

Car insurance rates are something that all drivers must deal with, but the sad truth is that they are going up. In this article, we will take a closer look at why car insurance rates are increasing and what you can do about it. We will also answer some of the most frequently asked questions about car insurance rates.

Why are Car Insurance Rates Going Up?

There are several reasons why car insurance rates are going up. One of the biggest factors is the increase in the number of accidents on the road. As more people are driving, there is a higher chance of accidents occurring. This means that there are more claims being made, and insurance companies are having to pay out more money.

Another reason why car insurance rates are going up is due to the rise in auto repair costs. With more technology in vehicles, repairs are becoming more expensive. Insurance companies have to pay for these repairs, which in turn increases rates.

The cost of medical care is also a factor in increasing car insurance rates. If you are involved in an accident, the insurance company may have to pay for your medical bills. With the rising cost of healthcare, this expense is also increasing.

Finally, insurance fraud is also a factor in increasing car insurance rates. Fraudulent claims cost insurance companies millions of dollars each year. To cover these losses, insurance companies have to raise rates for everyone.

How Much are Car Insurance Rates Going Up?

Car insurance rates vary depending on a variety of factors, such as your age, driving history, and the type of car you drive. However, on average, car insurance rates have increased by around 20% in the past few years.

This increase may not seem like a lot, but it can add up over time. For example, if you were paying $100 per month for car insurance, a 20% increase would mean that you are now paying $120 per month. This may not seem like a huge difference, but over the course of a year, you will have paid an extra $240.

Table: Average Car Insurance Rates in the United States (2018)

What Can You Do to Lower Your Car Insurance Rates?

Fortunately, there are several things you can do to lower your car insurance rates.

1. Shop Around

One of the best things you can do is shop around for car insurance. Rates can vary widely between different insurance companies, so it pays to do your research and find the best deal.

2. Increase Your Deductible

If you are willing to pay a higher deductible in the event of an accident, you can lower your monthly premiums. Just make sure that you have enough money saved up to cover the deductible if needed.

3. Bundle Your Insurance

If you have multiple insurance policies, such as car insurance and homeowners insurance, you may be able to save money by bundling them together with the same insurance company.

4. Improve Your Credit Score

Your credit score can also impact your car insurance rates. If you have a good credit score, you may be able to get lower rates. Check your credit score and take steps to improve it if necessary.

5. Drive Safely

Finally, one of the most important things you can do to keep your car insurance rates low is to drive safely. Avoid accidents and traffic violations, and your insurance rates will stay lower.

FAQ

1. Can I Negotiate My Car Insurance Rates?

It is possible to negotiate your car insurance rates, but it’s not always easy. You can try to negotiate with your insurance company, but they may not be willing to budge. Your best bet is to shop around and find a better deal elsewhere.

2. How Often Should I Shop for Car Insurance?

You should shop for car insurance at least once a year. Rates can change over time, so it’s important to make sure that you are still getting the best deal.

3. What Factors Affect Car Insurance Rates?

Several factors can affect your car insurance rates, such as your age, driving history, type of car, location, and credit score.

4. What Should I Look for When Shopping for Car Insurance?

When shopping for car insurance, you should look for a company with good customer service, competitive rates, and a variety of coverage options.

5. Can I Get Discounts on Car Insurance?

Yes, many insurance companies offer discounts for things like safe driving, good grades, and bundling multiple policies together.

Overall, car insurance rates are going up, but there are things you can do to keep your rates as low as possible. Shop around, drive safely, and consider increasing your deductible to save money on your premiums.