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In many states, including Georgia, car insurance is a requirement for owning and driving a vehicle. Many factors can determine your insurance rates, including age, marital status, and driving record. Other factors may be behind what is being seen as a rate hike across the United States. These factors include the rising price of vehicles and the rising number of accidents nationwide. USA Today reports on the story.
Zebra, a car insurance comparison website, says that average yearly premium for car insurance is $1427. This is an increase of 20% of rates in 2011. The state that had the lowest increase was North Carolina. By contrast, the state with the biggest rate hike was Michigan.
Rob Hoyt, a professor of risk management and insurance at the University of Georgia, said, “Premiums are going to be determined by frequency and severity of accidents.”
Another factor driving up premiums may be the new technology being loaded into today’s vehicles. As the technology improves and becomes standard or extra on vehicles, the price tag goes up. This can affect insurance premiums.
Tying in to the technology is also the number of distracted driving accidents.
Distracted driving claimed 3,477 lives in 2015 according to the National Highway Traffic Safety Administration. Further, according to the Brain Injury Society, drivers who were caught driving while distracted had a 15% increase in their premiums last year.
One of the best things that you can do to try and improve your rates is to shop around and take advantage of reward programs. Some insurance companies will exchange being able to monitor your driving for benefits such as cash back.
Have you been injured in an accident? We can help. Contact us today.
