Whether you’re in Whitefish, Montana, Lone Tree, Colorado, or Tustin, California, the answer to this question’s going to be the same.
Hey there I’m Dave Harriman home and auto insurance broker extraordinaire!
Alright I am going to address a question I’m asked all the time, which is:
why am I getting older, not having tickets, not having accidents,
but my insurance rates keep going up?
And this is the case no matter who you are insured with…
more than likely your auto insurance rates have been increasing
over the past several years.
Why is that happening to you? It’s not fair.
Well it’s because you don’t just pay for insurance
for losses that you have.
When you’re buying Insurance, you’re throwing money into a pool
with a bunch of other people. And some of those people
cost insurance companies lots of money and some of them cost insurance companies no money,
but you’re all sharing in that. So as calims costs go up
then everybody’s rates go up.
Sure the people that are costing insurance companies more money go up more,
But, ultimately, even the people that never file claims,
they’re still going to see their rates go up as well
So what is causing these claims cost to go through the roof?
Let’s think about it. I think you can figure it out.
What do you think is happening a lot now versus 10 years ago.
Just look around next time you’re driving; you’ll see it.
When people are supposed to be doing this.
And looking at the road in front of them.
What do you think they’re doing instead?
You following me? You see a little more of this.
Yeah a lot of that.
So that’s going to be a big part of it.
We’re having way more accidents occurring,
so that’s impacting things a lot.
The other side of it is the cost per claim.
So in the past insurance claims were pretty inexpensive
for low-impact accidents.
That’s not really a thing anymore. Even low-impact accidents
are really expensive now because cars have so much more technology
built into them, that even a low impact parking lot accident
isn’t just a few hundred dollars anymore. It’s going to be a couple thousand or a few thousand dollars because all those sensors in the bumpers
are having to be recalibrated.
So that’s sort of the tip of the iceberg when we’re talking about auto insurance rates there’s some more wonkish economics happening in the background,
but that’s the bulk of it.
So, nothing too crazy. But if you have questions, or
want me to shop your auto insurance, we work with a ton of different insurance companies, and
What’s right for your neighbor, probably isn’t right for you.
And vice versa. So, we can help figure that stuff out.
Alright, thank you. Take care.