Nobody likes seeing higher prices for anything, and insurance is no exception. Like many other items on the market, insurance rates have been increasing over the past several years. Here are a few reasons your auto insurance rates may be increasing.
2 Reasons Auto Insurance Rates are Increasing
Even with COVID interrupting normal driving habits, the number of auto insurance claims has gone up over the past two years. We’re not totally sure what the cause of this phenomenon is, but the auto insurance industry right now is “running a temperature,” meaning they are having a lot more claims than they are used to seeing. This means auto insurance companies across the board are beginning to raise their prices.
The increased price of vehicles is driving up auto insurance prices. It’s costing more and more to buy or repair cars. Even if you have an older car, it will take a lot more money to replace that car if it is totaled than it did before. That means your insurance premium is going to increase due to the increased demand for auto insurance.
What You Need to Know
You don’t have to worry about increasing values on your auto policy. Insurance companies go off standard values through groups like the NADA. But, here are three things you should do in light of increasing auto insurance rates:
Vehicle repairs are costing more than they used to, and that trend will probably keep increasing. Make sure you are properly caring for and maintaining your vehicle to prevent any large repairs. Not only that, it’s more important than ever to drive safely and avoid putting yourself, other people, and your vehicle in jeopardy.
If your car is being repaired and you are driving a rental car, make sure you have proper rental car insurance. Due to supply chain issues, it may take a while for your car parts to get in. Right now, the norm for getting cars repaired is about 30 to 45 days.
Auto insurance prices are being raised across the board. That means that if the company you currently have a policy with is raising their prices, it probably isn’t going to help you to switch to another insurance provider. Instead, it’s better to find an agency you trust and stick with them. Moving an account every year or two to save a few hundred, or even a few thousand, dollars can be counterproductive during times like this. Insurance is a relationship business and loyal customers have more bargaining power with trusted business partners than those who shop their accounts routinely. It’s best to find an independent agent that has access to several alternative markets so they can shop the account when necessary.
Get Tri-Cities Auto Insurance Coverage
These are some of the reasons auto insurance rates are going up and what you should do about it. If you have any questions or would like a free auto insurance quote, call our office at (423) 292-4142. We are an independent agency, meaning we can help you find the most suitable coverage available on the market for your needs.
