Why are my car insurance rates increasing?

 November 21, 2019     UFG Insurance    Auto   Personal  Read Time: 5 min

Another year goes by, another insurance policy renews. 

Some things stay the same, some things change—and your car insurance rates may be changing. Did you see your auto insurance premiums go up over the last year? Unfortunately, you’re not the only one. 

We’re going to shed some light on a popular question among drivers: Why is my car insurance rate increasing?

The reason why rates are going up

There are multiple reasons why car insurance rates are going up. But let’s take a step back: The idea of insurance is to share risk among parties and shoulder costs with others. Although your driving behaviors may not have changed, every one of us on the road is impacted by what happens in the market. 

Check out our infographic: Why are my car insurance rates increasing?

Here are some market statistics that help explain why your car insurance rates may have increased over the last year:

17.2 million: the number of new cars sold in 2018, according to foxnews.com. More new cars on the road translates to more—and more expensive—auto insurance claims. More claims equates to higher insurance rates for everyone to help share the cost.

381 million: the number of connected cars on the road by 2020, according to businessinsider.com. The amount of technology in cars is increasing, including vehicles equipped with internet connectivity that enables cars to access and send data, download software and communicate with other devices. 

94%: the number of car crashes caused by human error (NHTSA.gov). Human error plays a large role in car crashes as distracted driving is still very prevalent. Beyond insurance rates, stay safe and make sure you are not driving distracted.  

12 times: you are 12 times more likely to crash if you’re using your phone to call someone (Virginia Tech Transportation Institute). 

74%: the percentage of drivers who said they would use Facebook while driving (NSC.org).

5 seconds: the average amount of time it takes to send a text message (library.cqpress.com). 

48 states: the number of states where texting while driving is illegal (IIHS.org). All of these factors lead to higher car insurance rates.

What can I do to lower my car insurance rates? 

First, do not drive distracted. Always obey speed limits and traffic rules, and make sure you put your phone down when driving. This will help decrease the likelihood of getting into a crash and potentially having your rates increased. 

We have a few additional tips that may help lower your auto insurance rates:

  • Bundle your insurance to save $$$: A lot of insurance companies offer a discount when you insure more products with them, such as your home in addition to your auto. This also helps simplify the billing process. Make sure you ask your agent if there are any discounts available. 
  • Choose a higher deductible: This may seem counter-intuitive, but choosing a higher deductible rate will benefit you by receiving a lower premium. The lower the deductible, the higher the cost of coverage because of the risk exposure associated with the account. If your driving record is fairly clean from tickets and claims, this may be an option worth exploring.
  • Meet with your insurance agent: Independent insurance agents can help you find the best combination of coverage with a price that works for you. Find an agent to see if you’re getting the best deal on your car insurance rates today.

Addressing rising car insurance rates 

Those of us at UFG Insurance believe we have important responsibilities to encourage safe driving habits and help tackle rising car insurance rates for policyholders, too. 

We hear about distracted-driving accidents almost every day, but driving distracted is no accident. It’s a choice people make when they settle into the driver’s seat. When we all choose to focus behind the wheel, we all work together to create safer roadways that are less risky for travel. 

UFG’s Worth It campaign to end distracted driving helps support that goal. Worth It is a comprehensive educational and awareness program to remind drivers that life is worth it, driving distracted is not. After absorbing the magnitude of what can happen when a driver takes their eyes off the road, we encourage learners to take our Worth It pledge to affirm their commitment to distraction-free driving. 

What’s the next step?

Other than taking the Worth It pledge, make sure you obey all traffic signs and rules, of course. Making distracted driving a thing of the past will not only help keep you and your family safe, but it can help prevent car accidents which impact your car insurance rates. 

You can also reach out to your insurance agent to see if you are getting the best deal possible.

Remember: Life is worth it, distracted driving is not.

Disclaimer: Subject to applicable legal requirements, United Fire & Casualty Company and its subsidiaries and affiliates (UFG Insurance) are no longer renewing or writing new personal lines coverage for current or potential policyholders in most states. To accommodate obtaining replacement coverage, we have entered into a renewal rights agreement for most of our personal lines business. Read more here

The information provided is for informational purposes only. Every attempt is made to ensure that the information is accurate; however, it is not intended to replace professional advice. For more information, see Disclaimers & Other Legal Documents.