Reasons For Having Your Car Insurance Rates Increased

If your car insurance renewal got you higher insurance costs, you may feel a bit frustrated. But you are not alone. In fact, there are many Americans who feel the same way. We recommend you to talk with the insurer and ask for explanations. Change the carrier if they are not convincing. Find out how to get car insurance free quotes online and compare prices, then analyze the market. However, you should read the following reasons for having car insurance rates increased:

  1. car insurance free quotes onlineIncreased Medical Costs Every state has a minimum level of bodily injury liability coverage. The liability requirements can range from $20,000 up to $100,000. This coverage is the maximum amount your insurance company pays for medical costs in the event of a car accident. Increasing medical costs are putting a dent in the bottom line of car insurers. These costs are passed on to their customers in the form of increased car insurance rates.
  2. Increased Repair Costs. States also require drivers to carry minimum property damage liability coverage on their policies. That figure can range from $5,000 to $25,000 depending on the state you live in. This is the maximum amount your insurance company pays for damage as a result of an accident. The growing cost of labor is a major contributor to overall increases in repair costs. The largest repair cost comes from replacing expensive technology in newer vehicles.
  3. Increased number of Uninsured Motorists. The Insurance Information Institute estimates that 13 percent of drivers were uninsured in 2015. And the number has increased. The total amount of uninsured claims and the legal process it takes companies to secure settlements is huge.
  4. Insurance Fraud. When people cheat the claims process, it costs insurance companies a lot of money and the damage is passed to their clients and contributes to rate increases. The Insurance Information Institute estimates that insurance fraud costs Americans $32 billion a year. High risk drivers that lie to get the rates of a clean driver are the typical fraudsters. It’s the good drivers who take a hit on their rates when this happens. Some companies cover loss better than others. Because of this car insurance rates are always changing. If your rates have changed, it’s a smart move to compare car insurance free quotes online from multiple companies.

And there are many other factors that impact negatively the cost: price optimization, social unrest, car thefts and so on.

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