Auto insurance premiums have been slowly rising and rising over the last few years. Why have your rates consistently been going up? In todays’ blog we will go over all the different factors that go into why your rates have been on the rise.
The first cause of the rise in premiums may seem obvious, it is inflation. These billion dollar companies are far from immune to the effects of inflation. For example, let's say that you damaged your car in 2012 and it cost the insurance company $5000 to repair it. Now say that you damaged your car today, and you had to bring it to the shop, it could be almost double in price for the insurance company to repair your car.
During COVID, in Arizona alone, there were about 350 people a day moving into the state. The more people, the more chances of accidents. When we see major spikes in population, especially in a condensed area, the prices of auto insurance will rise. Not only that, Arizona is ranked 4th in the nation's worst drivers. This list is compiled through the number of vehicular fatalities and wrong way drivers. There is a surprising amount of bad drivers out there and unfortunately, they can affect your premium prices.
When you are driving on the freeway next time, take a look and notice how many injury attorney and lawyer billboards there are. Also notice how many of them are urging you to call them after you get into an auto accident. Most lawsuits after a car accident are completely frivolous, and sometimes even fraudulent. Lawyers can help you after an accident, but most of the time it is unnecessary. And with more litigation against insurance companies, the prices will continue to rise.
At AZ Insurance Team we specialize in finding our customers' perfect policy! Give us a call today at (480) 535 5709 and find out why we are one of the leading brokers in the state of Arizona!
Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…
Disclaimer: Coverage will vary on state, insurance company, and type of policy.
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