Why Your Car Insurance Costs are Skyrocketing
Each year you need to renew your auto insurance. Most people see an increase in the cost of their insurance each time they go to renew.
Auto Insurance Rates
There’s a long list of factors that could explain why your auto insurance is high, including your driving history, age, your car and even your credit score. If you are wondering why the price of you car insurance has increased, the answer can be related to some driver related and some non-driver related factors. Here are some of them:
Driver Related Factors
- You have been in an accident that was deemed to be your fault. When this happens, the discount you receive for being a safe driver is affected and reduced. In BC this discount increase each year to a maximum of 43%., ICBC states driving experience and crash history play a bigger role in determining the cost of your insurance
- Many think that getting tickets will increase your auto insurance rates in BC, but that is not the case. In BC the tickets that you receive give you penalty points and though these do not affect your premium, you must pay these points off before you renew your insurance.
Check out our article on 5 Ways To Save On Car Insurance to help you reduce your Car Insurance rate.
Non-Driver Related Factors
- Today’s cars simply cost more to repair than the cars our parents had. There is technology in each vehicle like driver assistance that relies on a complex system of computerized components and sensors. The new technology that is added to today’s cars do offer us a more pleasant driving experience, but the insurance companies see the cost required for repairs if you need to make a claim.
- The same technology that increases the repair cost of your vehicle is also responsible for another rise in cost. Distracted driving is a huge issue currently and this is causing an increase in accidents. As the number of accidents rises so does auto insurance rates.
- Insurance fraud also affects your auto insurance rates. In 2017 the ICBC Special Investigation Unit conducted 16,000 suspected cases of auto insurance fraud. An alarming 54% of those were deemed to be fraudulent.
- Medical care and rehabilitation are more expensive. As with the cost to repair your vehicle, the cost to heal and mend your body has also gone up.
- The area where you live can also cause an increase if your auto insurance. Insurance companies are a number based entity and if the numbers show that you live in an area is seeing a rise in congestion, accidents, fraud, and even extreme weather you may see an increase in your insurance rates.
How to Get a Better Auto Insurance Rate
One of the best ways to save on car insurance is to shop around and try to find a better deal. An insurance broker can help you save money and time and find the best auto insurance rates. At AMC Insurance we shop for the best rate for you. Contact us to get a free quote.
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