Why Are Your Auto Insurance Premiums Increasing?
A Minnesota Auto Insurance Update
You may have noticed your auto premiums are increasing. In fact, auto rates are increasing all over the country. The reason for the increases are not what you may think. It is not because the insurance companies want to make more profit, it is due to the overwhelming number of accidents and the cost of these accidents. Most major auto insurers are paying out more in losses than they are taking in premiums.
The two contributing factors are the number of distracted driving accidents, and the cost of repairing newer, technologically sophisticated cars.
Distracted driving accidents are increasing in America due to the growing use of hand-held devices. Too many people are interacting with their phones while driving. Phones and sophisticated dashboard technology are among some of the top activities that lead to accidents.
Driving while using a hand-held device increases the likelihood of a car accident by 400%.
Driver distractions are the leading cause of most vehicle crashes and near-crashes. According to a study released by the National Highway Traffic Safety Administration (NHTSA) and the Virginia Tech Transportation Institute (VTTI), 80% of crashes and 65% of near-crashes involve some form of driver distraction. The distraction occurred within three seconds prior to the vehicle crash!
Cost of Repairs Are Up Dramatically
Most new cars are designed with sophisticated technology that is expensive to repair. Even the cost of bumpers has increased over 100% according to the Insurance Information Institute. Today’s vehicles are equipped with expensive computers that control and monitor hundreds of features on the vehicle. These computers are typically not repaired, but are replaced, which increases the total cost of the auto repair.
Get a Quote Today
72% of auto insurance in the United States is with just 10 companies. If you have not had us shop your auto insurance, now is the time.
Call us today and let us help protect what is important to you. Insurance specialists at Innovative Insurance Services LLC serve to help you coordinate an insurance program that determines the best coverage options for your needs – for benefits and quality discounts that help you save. What does this mean for you? By combining home and auto policies, you may be eligible to receive money-saving discounts, a guaranteed full-year policy term for your car, On Your Side® insurance protection, 24-hour Customer and Claim service, and more.