Rising Car Insurance Rates
Ever wonder why your car insurance rates increase from year to year? According to an article printed by Safeco Insurance, insurance carriers are paying out more in auto claims than they have in the past.
Here are six statistics related to rising auto insurance rates:
- The U.S. set a new car sales record of nearly 17.5 million vehicles in 2015. Newer cars have advanced technology and are more expensive to repair.
- 3.148 trillion miles were driven in 2015. That’s a 3.5% increase over 2014 – that is the largest annual increase in 25 years.
- 2015 accident frequency increased; bodily injury increase about 3%, property damage liability increased 0.9% and Personal Injury Protection (PIP or no-fault claims) increased by 6.6%.
- Traffic deaths decreased 22% from 2000 through 2014. Estimations for 2015 show a 7.7% increase over 2014.
- From 2005 to 2013, the average cost per paid bodily injury liability claim increased 32.1%.
- Drivers are more distracted. In 2014, 3,179 people were killed and 431,000 people were injured as a result of distracted drivers.
Need help understanding your car insurance and what coverage you should have? Contact the insurance experts at American Advantage – Petersen Group to help you get the best value in insurance!