3 Factors That are Driving Auto Insurance Rates to Increase

Auto insurance premiums have increased over the last several years.  What are the causes of these increases, and will they continue to rise?

1.) Miles Driven.  Miles driven increased from 2.9 trillion in 2009 to 3.2 trillion in 2017, in part due to lower gasoline prices.  More miles driven leads to more accidents which in turn, leads to more claims. This increased claim frequency results in higher premiums.

2.)   Advanced Driver- Assist Technology.  While driver-assist technologies such as backup cameras and lane sensors have enhanced driver-safety, repairing these technologies has become much more difficult. These repairs are often associated with increased costs, which causes increased auto premiums.  This trend will likely continue as more advanced features become the norm on newer vehicles.

3.) Distracted Driving.  How many drivers do you see talking on the phone or texting when you drive to work or to the local store?  A recent study from the Insurance Institute for Highway Safety states that pedestrian deaths are up 46% since 2009. It is widely believed that this increase is connected to distracted driving. In the upcoming years it is expected that more states will continue to pass tougher distracted driving laws.