by Randy Misener Why is Car Insurance going up?
Although you may have driven your vehicle for many years without being involved in an accident or even had any ticket violation, a range circumstances have led to an upward trend in car insurance costs.
- Vehicle repair costs have reached new unprecedented levels. Vehicle bodies are designed to collapse on impact, helping to ensure passenger survivability in a crash. This is good for obviously reasons; however, this comes at a cost.
- 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.
- The other major cause of accidents is lacking driver attention. Plain and simple. Our lives are filled with so many distractions now. Between 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.