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In the past year alone, that index is up by 16.3%.
Whats causing the surge in car insurance rates?
There are several factors and unfortunately, most of them are outside your control.
However, there are someways to save on your car insurance.
In 2022, there were 18 such storms, and in 2021, there were 20.
Compare those numbers to 2015, when there were 10 natural disasters with damages exceeding $1 billion.
And if you go back even further to 2007, there were just five.
A spike in claims correlates directly to rising premiums.
A Jump in Traffic Fatalities
The COVID-19 pandemic lockdowns meant fewer drivers on the road.
However, as the lockdowns ceased, driving fatalities jumped.
Between 2020 and 2022, driving deaths increased by 18.1%, according to theNational Highway Traffic Safety Administration.
Fatalities fell slightly over the past two years but are close to 41,000 annually.
Thats a yearly gain of 8,000 deaths since 2013, when they averaged 33,000.
Fewer Car Repair Technicians
What happens when your car needs fixing after a collision?
It likely goes to the repair shop, where technicians restore its appearance and damaged parts.
But body shops are finding it harder to find talented workers.
In 2023, there were nearly 5,500 unfilled collision tech jobs, according toTechForce Foundation.
However, that increases the shops overhead, and some of those costs get passed to insurance companies.
Rising Costs for Vehicle Parts
Todays cars contain more electronics and specialty parts than older vehicles.
For instance, newer cars often come with easily damaged rear-view cameras and parking sensors.
According to the BLS, vehicle part prices increased 6.5% since September 2020.
Sometimes, changing insurers can yield savings, keeping premiums within your budget.
When youre considering a new insurance company, look into its discount policy.
check that to ask the insurer to apply the savings to your quote before committing to a new policy.
You may also enroll in asafe driving course.
Some insurers reward clients with lower premiums after completing a class.
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