State Farm Blames Rising Car Insurance Rates on 3 Factors
Car insurance prices are always rising and falling; however, recent trends point to rising prices. State Farm thinks they know what is causing this jump in car insurance rates.
After all, the cost and frequency of claims are also increasing, thus affecting car insurance premiums. It’s an industry-wide issue that affects most of us who need a vehicle to get to work, school or run errands, and/or drive our kids around constantly to their various activities.
When you think about it, it’s not
too much
of a surprise, as it seems that just about everything becomes more costly as time goes on. But what exactly is causing car insurance rates to rise, and can anything be done about it?
More driving = more car insurance claims
In recent years, lower gas prices have made driving more affordable for more American families. But more miles driven overall means there’s been an increase in accidents and insurance claims —and unfortunately, that means that insurance rates are increasing in order to cover these costs.
每个人都可以努力帮助解决这个问题lem by practicing safe driving habits. Remember to follow basic safety rules when driving—buckle up, obey traffic laws and pay attention to the road. Accidents can happen very easily, even if you take your eyes off the road for just a second.
Is distracted driving on the rise?
We’ve come to rely heavily on our cell phones to stay connected, but this isn’t such a good practice to mix with driving. In fact, a State Farm
survey
revealed that almost one-third of drivers access the internet while driving and that 10% record video with their phones.
Sadly, statistics show that teens are more likely than other age groups to be involved in distracted driving accidents. Be mindful when driving, and avoid doing anything that takes your attention away from the road, like reading or answering a text.
The increasing costs of repairs is driving up car insurance premiums
Stronger materials, smart sensors for parking, lane departure warnings, and other tools for improved safety are becoming standard on many vehicles. Of course, these devices have helped make driving safer in some ways. But they are also expensive to repair, contributing to rising insurance costs.
In fact,
State Farm
reports that the cost of body of work has increased almost 40% more than overall inflation and that collision claims increased 8.2% from 2014-2015.
Use Jerry to save money on car insurance
Despite the rising costs of insurance, you can still save money and get excellent coverage—and
Jerry
can help.
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As a licensed broker, Jerry also takes care of your insurance needs from start to finish. The app also monitors your car insurance rate every six months on an ongoing basis.
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