What’s with auto premiums increasing?

This is a common question, “why is my auto insurance rate increasing?”

This is a question I hear from consumers all over, regardless of what insurance company they have. This has no reflection on any particular insurance company, for these reasons are an industry wide issue.

First off, insurance premiums are the first things we notice when the rate increases, because it’s something we HATE paying for. We HATE being mandated legally to purchase something, so it’s natural that our hatred continues when we see that the bill increases.

We don’t, however, balk when the cost of our dinner at our favorite restaurant increases 10% because the restaurant is undergoing remodeling and to offset costs somewhere, or supply and demand leads to a price increase.

First, while your auto insurance is mandatory, it is very much necessary as well. Proper liability coverage protects you from deep pocket litigation that can cost you your life’s work. Accidents happen, it’s important to have a company and agent you can trust to stand by you.

Now for the reason…the last several years while our economy has improved, gas prices have reduced, more people are driving (not their 5,000 annual miles, but 20,000 miles), with the increased popularity of smart phones, apps like WAZE, etc., accidents have increased dramatically simply due to distracted drivers.

“5 seconds, 5 seconds is the average time with eyes off the road while using a cell phone or electronic device…on the highway that’s equivalent to driving the length of 2 football fields, BLINDFOLDED…”

Mileage is a huge factor, when you drive more you put yourself into more instances where an accident can occur. Farmers, as I’m sure other carriers as well, have taken many underwriting initiatives to help accurately rate drivers and prevent further rate increases. The goal is to properly rate drivers so that you pay for what you use, and not what others do. As for now, the cost of insurance has increased for the insurance companies, and has subsequently caused an increase for the consumer, you. Just the same when oil prices increased and this caused a flare in gasoline prices. Or when there are shortages of rice, and rice prices sky rocket, etc.

The industry is revamping and we are doing everything we can to properly rate each driver to drive the cost of insurance back down. We’re trending in a great direction!

As a nation, a state, a county, a community we ask that you be more defensive on the road, less distracted and more hands-free. It’ll save you money, and possibly your life.

Check out the statistics below!

 

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