I was talking with a client yesterday and they were lamenting about how the price of everything just keeps going up. Nothing seems to be getting cheaper. I tried to recall the last time insurance rates decreased and I would say it has been at least 10 years. It seems there are always events driving auto insurance rates and currently a major issue is the cost of repairing today’s sophisticated vehicles. Over this past year, a larger percentage of my clients that had car accidents ended up with the car being a total loss. With all the new safety features and new gadgets on today’s cars come more expensive repairs.
Airbag deployment, backup cameras, auto breaking systems, self-parking sensors, rain sensing windshields, tire pressure sensors….. you get the idea. If any of these are deployed or damaged in the accident, they must be repaired or replaced, and this is before you figure the cost of repairing the bent sheet metal. So the average cost of repair goes up and unless the frequency of accidents declines, our premiums will also go up.
So what can you do to slow the increase of your auto premiums? Drive conservatively and try to avoid those drivers who are in a hurry or not paying attention. At stop lights leave plenty of room between your front bumper and the rear bumper of the car in front of you so if you are hit in the back, you don’t get pushed into the car in front of you. Don’t be texting while driving and honk at those who are, (just kidding). Don’t get in a hurry and try to “make it” on the yellow light. If you are a defensive driver and have avoided being in an accident, you might consider increasing your Collision deductible which can save you money if you drive a late model vehicle. If you have Medical coverage to help offset your high health insurance deductible in case of an auto injury, you can modify this coverage to have a $500 deductible which will save you money as well. And if you drive an old car like I do and you are still paying for Collision coverage, you might want to remove that completely. You can always call your agent and at least see what can be saved by making some of these changes. It could be worth doing or maybe not, but you can at least make an informed decision.
Be safe out there.
Airbag deployment, backup cameras, auto breaking systems, self-parking sensors, rain sensing windshields, tire pressure sensors….. you get the idea. If any of these are deployed or damaged in the accident, they must be repaired or replaced, and this is before you figure the cost of repairing the bent sheet metal. So the average cost of repair goes up and unless the frequency of accidents declines, our premiums will also go up.
So what can you do to slow the increase of your auto premiums? Drive conservatively and try to avoid those drivers who are in a hurry or not paying attention. At stop lights leave plenty of room between your front bumper and the rear bumper of the car in front of you so if you are hit in the back, you don’t get pushed into the car in front of you. Don’t be texting while driving and honk at those who are, (just kidding). Don’t get in a hurry and try to “make it” on the yellow light. If you are a defensive driver and have avoided being in an accident, you might consider increasing your Collision deductible which can save you money if you drive a late model vehicle. If you have Medical coverage to help offset your high health insurance deductible in case of an auto injury, you can modify this coverage to have a $500 deductible which will save you money as well. And if you drive an old car like I do and you are still paying for Collision coverage, you might want to remove that completely. You can always call your agent and at least see what can be saved by making some of these changes. It could be worth doing or maybe not, but you can at least make an informed decision.
Be safe out there.
RSS Feed