Here’s why your premiums are on the rise.
Do you feel like your auto insurance premiums are increasing every year? Well turns out you might be right. When calculating your insurance premiums, your insurer takes many factors into account. If these factors change, then so will your rates. Here are some of the factors that could be causing your auto insurance rates to rise.
Because new cars usually have the most updated and flashy features, they tend to be more expensive to repair. Even if you do not own a new car, many other drivers are upgrading to the newest models. With more new cars on the road, this increases your chances of getting into an accident with one. This increased risk coupled with high repair costs translates into increases in your car insurance premiums.
Rising Medical Costs
As the cost of medical treatments rise, so does your auto insurance premiums. This rate increase is necessary to ensure that you have enough coverage to address your medical expenses or the medical expenses of others following a car accident.
Surprisingly, fluctuating gas prices can also influence your auto insurance rates. When gas prices drop, people tend to drive longer and more frequently. This means that there are more cars on the road, which puts you at higher risk of an accident. This increased risk will cause your auto insurance rates to increase.
These are some of the reasons why your auto insurance rates are increasing. Do you have further questions regarding your car insurance? Then don’t hesitate to contact the experts at Pierce Insurance Group. Our dedicated team is ready to get you the coverage that you need today.