Here’s Why Your Auto Insurance Premiums Might Be Rising

If you’ve had auto insurance for some time now, you probably noticed the hike in auto insurance prices. Many factors within your control affect your auto insurance rates, like your driving history.
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However, there are others that you don’t have control over. Here are some of them.

Higher Repair Costs
Various technologically-advanced features in cars have been driving repair costs to the roof. Due to the materials used to make the cars, highly technological components, and modern car designs, repair costs are higher. Because of this, insurers might increase your rates to allot a budget for the expensive repairs.

For example, repairs for cars with cameras or sensors might cost more than restoration for those without. If you have a newer model, expect your rates to be quite expensive.

Increase in Medical Costs
Since medical costs have been increasing through the years, insurers are hitting policy limits to cover medical expenses. Although you might think there’s a disconnect, auto insurance rates might also go up because of this increase.

You Moved to Another Location
Moving to a new place means changing where you drive, which means your auto insurance rates might change. Typically, this is because your new location might have a different type of traffic. For example, moving to a rural state from the suburbs can cause your premiums to change.

Environmental Factors
Natural disasters have been happening over the years. With this, insurance agencies have been flooded with more claims than in previous years. We all know comprehensive coverage is a big help to the insured. However, insurers pay tons of money annually because of damages caused by natural disasters. Because of this, auto insurance rates go up with the increase in natural disasters.

Uninsured people
While almost all states legally require auto insurance, it doesn’t mean everyone’s equipped. And although insured drivers have multiplied over the last few years, insurers still pay billions of dollars for uninsured claims.

Because of these costs insurers pay, your insurance rates might increase. That said, equipping yourself with uninsured motorist coverage is a smart idea.

Conclusion
Auto insurance ensures that you’re financially protected. And while it’s unfair to pay for higher premiums because of things you don’t have control over, being financially protected is more important.

At Family Auto Insurance Agency, we put our clients first by offering them policies they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (313) 285-9042. You can also request a free quote by CLICKING HERE.