Key Factors for the Upward Trend in Car Insurance Costs

Although you may have driven your vehicle for many years without being involved in an accident or even having any ticket violation, a range of circumstances has led to an upward trend in car insurance costs.

Vehicle Repair Costs

Vehicle repair costs have reached unprecedented levels. Vehicle bodies are designed to collapse on impact, helping to ensure passenger survivability in a crash. This is good for obvious reasons; however, this comes at a cost.

Injury Claims

Injury claims increase every year for things like loss of income, out-of-pocket expenses, pain and suffering. Interestingly, have you noticed all the bus ads for injury lawyers lately? Even low-speed collisions can cost thousands of dollars in repair costs considering cars are largely made of plastic and composite materials.

Declining Driver Attention

The other major cause of accidents is a lack of driver attention. Plain and simple. Our lives are filled with so many distractions now. Mobile phones, texting while driving, snarled traffic, distractions from your kids, and rushing to work all contribute to attention disruption behind the wheel.

Premium increases (particularly in HRM, where traffic is most concentrated) are a by-product of all these trends, necessary to keep up with increasing claims costs. We understand your frustration. While car insurance trends upward, the Insurance Industry is working to control the cost impacts. However, that process will take time.