Have you noticed your insurance rates have gone up and you’re not sure why? If you haven’t made any claims or had any big life changes, we know why changes in insurance rates can be confusing.
You see the same amount come out of your bank account for your auto insurance each and every month. Then all of a sudden a higher amount is withdrawn and you’re left feeling confused about why the increase took place.
Rising Insurance Costs?
The truth is auto insurance rates are increasing. So even if you’re someone who hasn’t been involved in any accidents and hasn’t made any claims, it’s still possible your auto insurance may be going up.
Reasons Your Insurance Rates Might Go Up
Here are a few of the factors out of your hands that may be causing your insurance to increase:
- Increases in repair costs: Just like anything else, the cost to actually repair a vehicle is going up. Largely due to expensive technology and new features.
- Increases in medical costs: Similar to repair costs, medical costs are also climbing. Insurance companies are taking this into consideration and making rates based on it.
- More drivers on the road: More drivers unfortunately means more accidents.
- You moved homes: Where you live has an impact on your insurance rate. That’s because different areas can have more traffic which increases the chances of an accident.
- Natural disasters: We’re seeing natural disasters occur more frequently in recent years which means more claims than ever seen before. Since these damages are covered by insurance, policy providers have no choice but to increase auto insurance rates.
- Uninsured drivers: It’s crazy to think but there are some drivers out there who don’t have insurance. The more of these drivers there are the greater the chance of damages not being covered in the event of an accident.
No matter what, the best way to be sure you’re getting the best coverage at the best price means maintaining a safe driving record for as long as possible and working with a car insurance company in Salt Lake City you can trust. Call us today to learn more about your policy options!