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. So why is car insurance getting so expensive? The answer can be related to a number of things, some driver related and some non-driver related.
Why Is Car Insurance Getting So Expensive – Driver Related
There are things that cause the price of your car insurance to increase, these include:
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 which in BC this discount increase each year to a maximum of 43%, is affected and reduced. Your discount decrease in BC can be seen in this document by ICBC.
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.
Why Is Car Insurance Getting So Expensive – Non-Driver Related
There are factors that will cause your insurance to increase and these include:
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.