3 Factors That Will Drive Car Insurance Rates

If you’re also worried about your surging car insurance, you’re not alone.

It’s easy to fall in the trap of a lower coverage and increased deductibles, in order to purchase car insurance at cheap rates. However, you may be surprised to know that there are several other factors that may push up the car insurance premiums.

While you may not be able to control or modify all these factors, it’s always good to be informed for better decision making. Ahead, we have rounded up three key factors that your auto insurer may consider while setting the premium for your car.

Legal Factors

Auto insurance companies are required to comply with state regulations, which is why their premiums can fluctuate with changes in the law. For instance, in Michigan, all car owners are required to have insurance coverage for personal injuries with their car insurance policy.The Personal Injury Protection (PIP) law also requires this coverage to be limitless to fulfill state’s requirement of minimum coverage.

This makes Michigan of the most expensive states one it comes to auto insurance, according the Insurance Information Institute. State regulations like these can significantly impact the premiums on your car insurance.

Natural Calamities

After Hurricane Harvey wreak havoc on Texas, about 500,000 auto insurance holders claimed for their coverage, according to an article published on the New York Times. Car insurance companies lost about $2.7 billion in a small time and the insurance rates surged by a whopping 8 percent.

Whether it’s a wildfire, hurricane, flood, or an earthquake, natural disasters can cause the insurance premiums to rise. Widespread damage means more insurance claims, which means higher costs for auto insurers. Ultimately, they’ll have to cover the costs by raising premiums.

Expensive and Complicated Car Parts

As automobile industry becomes more technologically advanced, cars are becoming more complex with expensive parts. Repair and replacement costs for these complicated parts are hiking, ultimately increasing the costs for auto insurance companies. According to an S&P Global Market Intelligence report, insurers have seen a significant surge in the number of claims for totaled vehicles.

If you’re looking for cheap car insurance in Bradenton, FL, get in touch with Manatee Insurance Services, Inc. The company offers top-of-the-line and budget friendlyinsurance solutions for cars, boats, motorcycles, along with the best flood insurance and property insurance options.

To get insurance for your car, connect with their representatives at 941.747.7283 for further queries and concerns. You can also apply for a free quote on their website!

Categories: Insurance

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