Insurance premiums are based on a wide variety of factors. Sometimes these cost factors raise, and sometimes they go down. In most states, costs are currently rising. Your actions, as a policyholder, can also impact your premiums. For example, if you add another car or a teenaged driver to your policy, your costs will increase. Alternatively, your costs will decrease if you drop either a car/driver from your policy.
However, there are also other factors outside of your control that could cause rates to increase, such as crashes other people are involved in. The number of crashes, and their expenses, are a component of auto insurance pricing, therefore those living in large metropolitan areas are likely to pay more since more crowded roadways increase the number of car crashes in those cities. Plus, speed limits are also being raised.
Speed is the single biggest contributor to crashes in which driver error is cited as the cause. Distracted driving is an issue everywhere. In big cities and small, people texting, talking or otherwise occupied with another activity while driving is being blamed in part for more crashes.
What Causes a Rate Raise?
Hobbs New Mexico Car Insurance covers more than just vehicle repair. It also covers the cost of injured crash victims’ medical care and lost wages as well as the repairs and/or replacement of vehicles and any property damaged in a crash. In recent years, medical and auto body repair costs have increased at a rate much faster than inflation. Legal costs have increased as well.
Also, with the unemployment rate falling, more people are driving both to and from work. And with more disposable income, they are presumably driving more for leisure. They also have the means to purchase more expensive cars. And while many of these cars have all types of safety features that might help in accident avoidance, their high-tech components are also more expensive to fix and replace if damaged.
Auto insurers are committed to reducing U.S. crash rates. They fund the Insurance Institute for Highway Safety (IIHS), support efforts to combat distracted driving as well as drunk or drugged driving. In addition, auto insurers offer discounts to policyholders who take defensive driving courses or drive fewer miles. It is up to you to take proactive steps to reduce auto insurance costs. Premiums rising once does not mean that you are forever doomed to spend more money on your coverage. Speak with your Hobbs New Mexico car insurance agent to ensure you’re getting all of the discounts you qualify for.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that people like you face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.