Auto Insurance Rates Rising Due to Increasing Costs of Claims

As you may or may not be aware, the auto industry has experienced an increase in loss costs over the past 5 years with more accidents and severity[Ref. 1]. When you see insurance rates rise, we want you to understand the factors that may affect your premiums.

People are buying more cars. In 2015, Americans bought a record 17.5 million new vehicles[Ref. 2].

People are driving more. Thanks to lower fuel prices and higher employment, 2015 saw the highest increase in driving in 25 years[Ref. 3].

Distracted driving is increasing. According to the National Highway Traffic Safety Administration, fewer people are talking while driving. But more are texting and surfing the web[Ref. 4].

Injury costs are rising. Driven by medical inflation and increasing claim complexity, costs are up 5-6 percent[Ref. 4].

To keep your insurance rates low, contact Suburban Insurance Services, LLC for competitive quotes at 602-606-6798

[1] Insurance Information Institute, 2016; [2] Strategy & Price WaterHouse Coopers, 2016 Auto Industry Trends; [3] U.S. Department of Transportation’s Federal highway Administration; [4] National Highway Traffic Safety Administration