Find out why your auto insurance rates are on the higher side.
While no one wants to pay more for their auto insurance than they have to, there are some legitimate reasons why your car insurance rates may have increased. In fact, your increased rates might actually be caused by factors outside of your own control. Curious to know why your car insurance seems so expensive? Here are some of the reasons behind your higher rates.
- The Number of Traffic Accidents Have Increased
In 2016 alone, the number of traffic fatalities rose by 6%, reaching a 10-year high. The cost of accidents, whether it be the cost of injuries or property damage, also increased by 12%. This increase in traffic accidents has resulted in a general insurance rate increase.
- More Cars on the Road
With more cars on the road, there is an increased risk of getting into a car accident. This risk translates into higher insurance rates for all drivers. In 2016 alone, 17.6 new cars were added to the streets.
- New Technology
New technology can also lead to an increase in your auto insurance. For instance, many new cars now feature xenon headlights, sensors, cameras, and so on. If your car has these fancy new features, then expect your insurance rates to be on the higher side. These increased rates are due to the higher repair costs your car will need to replace or repair these specialty parts.
- Low Gas Prices
When gas prices drop, Americans tend to drive more. The more you drive, the higher your chances of getting into a traffic accident. This increased risk translates into higher car insurance premiums.
It has been estimated that fraud might add up to 30% to the cost of auto insurance policies. Instances of fraud include filing fake claims, orchestrating traffic accidents, and so on.
These are some of the reasons why your auto insurance might seem more expensive. Do you have more questions regarding your auto insurance? Then don’t hesitate to contact us at Randy Jones Insurance Services. Located in Pleasanton, California, we are ready to assist you with all your insurance needs.