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Changes in the Auto Insurance Market

By July 11, 2017April 2nd, 2020Auto Insurance

The cost of insurance is affected by many factors in the overall marketplace, and your driving record is just one of them.

Trends in the auto industry cause rates to fluctuate. At times, the increases are small adjustments for inflation. Other times, multiple factors can cause rates to rise.  Some of the likely causes of the trends we are currently seeing include:

  • Gas is cheaper than it was five years ago.  This allows more people and vehicles to be on the road, leads to more accidents, and is reflected in significantly increased claims frequency.
  • Distracted driving is on the rise.  Drivers are more distracted than ever by texting and surfing the web. At the same time, traffic fatalities are approaching record levels.  The National Safety Council estimates that one in four car crashes involves cell phone use.
  • Auto claims are much more expensive than they used to be. Cars have more advanced technology and safety devices now. For example, insurers are replacing car bumpers that now have cameras and sensors built into them.  This drives up replacement and labor costs
  • Medical costs.  Costs are growing exponentially, affecting the amount paid on claims.

According to Travelers Insurance, in the year 2005, a Honda Accord bumper cost $818.  In 2015, it cost $1,162, which was an increase of 42%.  In 2005, a Ford side view mirror cost $845; in 2015, it cost $1,349 (up 60%).

We understand that rate revisions can be difficult, and we are here to help however we can.  If you are looking for ways to control the costs of your automobile insurance, here are some of our suggestions:

What are your deductibles? Are you willing and able to pay more out-of-pocket if you have an accident? 

A deductible is the amount of money you must pay out of your own pocket before your insurance kicks in. A higher deductible should mean a lower premium; a lower deductible, a higher premium. Auto insurance deductibles typically range from $100 to $1000, but vary by coverage, company and state.  We recommend that you choose a deductible you’d be comfortable paying in the event of a loss.

Do you have all of your insurance with us? 

Several insurance companies offer multi-policy discounts when you have more than one policy with them. For example, if you insure both your home and auto with one company, you may could save money on both policies.  While it doesn’t always work that way, it pays to let us review all of your coverage to be sure you have the best solution for your unique situation.

Are you a safe driver?

Many companies offer savings and discounts to safe drivers. For example, if you and others in your household maintain driving records free of accidents, violations, and large claims, you could see lower premiums.

Other ways to save

Auto insurance companies differ in the types and amounts of discounts and savings they offer, but here are some ways to you may be able to save:

  • Paid in full discount or automatic draft payments for people who pay their entire premiums in full or via an automatic draft.
  • “Go Green” and cut off the paper delivery of your policies and some companies will offer a discount.
  • Good student discount, for young drivers with good grades (e.g., A/B average).
  • Driver training discount, for young drivers (e.g., under age 21) who complete a driver training course.
  • Student away at school discount, for people with a child who goes away to school and leaves his car at home.
  • Safe driver discount, for drivers that have no accidents, violations or major comprehensive claims in their households.
  • Multi-car discount, for people who have multiple cars insured on one auto policy.
  • Hybrid vehicle discount for customers with hybrid autos.
  • Early quote discount, for people who plan ahead and get a quote in advance of their desired policy start date.

While not all of these may be offered by every company, our partners offer many of these options.  As an independent agent, we are proud to be able to offer you a choice in companies for the coverage you need. If you have questions, please call us at 864-288-9513 or email us today.

The Turner Agency, Inc. is a local Trusted Choice® independent insurance agency located in Greenville, South Carolina and in Clemson, South Carolina as The Sosebee Agency. Serving the Upstate of South Carolina and beyond since 1962, we offer a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs for home, auto, business, or other insurance products.  Contact The Turner Agency or the Sosebee Agency, a Turner Agency partner, today.

The information in this article was obtained from various sources and is not all-inclusive regarding the subject matter. This content is offered for educational purposes only.