My auto insurance increased by 18%; what should I do? According to the US Bureau of Labor Statistics, auto insurance rates have increased by nearly 18% compared to last year nationwide, especially in Florida.
The reason behind the increase, as insurance experts claim, is multifaceted. However, the primary influence comes from the growing frequency and severity of accidents.
Insurance companies measure loss costs, the amount they pay for accident claims. In recent years, there has been a significant increase in this area. Despite the rise in premiums for drivers, companies continue to pay more in claims than they collect in insurance premiums. The result is the ongoing rate hikes that drivers face.
Another contributing factor is insurance claims fraud. Various fraudulent schemes have been detected throughout Florida, such as drivers staging accidents to collect insurance money.
The third factor is that with multiple vehicle safety devices, repairing a modern car is much more expensive than an older one.
The increase in severe weather phenomena, such as hurricanes and floods, the rising number of vehicle thefts, and an overall rise in post-accident litigation also play a role.
With this landscape, many car owners wonder if there’s anything they can do to lower their insurance premiums without reducing coverage.
The first step is to contact an insurance specialist at Univista Insurance to review your policy thoroughly.
This expert may propose bundling home and auto insurance under the same insurer, setting up automatic bill payments or consolidating all auto insurance under one provider. They might suggest requesting a safe driver discount if you haven’t been involved in an accident in recent years.
Another way to lower costs is to pay the entire premium upfront electronically.
You can also opt for “Usage-Based Insurance,” where a tracker is connected to your vehicle to measure the distance you drive and your driving habits. If you are a safe driver, avoid speeding, harsh braking, and go during low-traffic hours, the app installed in your car can result in significant savings. This insurance option may not be recommended if you do the opposite, like speeding, harsh braking, and covering many miles. My auto insurance increased by 18%; what should I do?
Feel free to reach out to us today for a thorough evaluation! (305) 985-4126. You can also get a free quote here.
