Did auto insurance go up this year?
Question:
Answer:
Mine went up.
The reasons given by the insurance company;
Cost of medical expenses went up
Cost of auto replacement parts/repairs went up
Number of accidents in the area went up
MINE WENT DOWN, I HAVE 2 CAR'S, ONE IS FULL COVERAGE, THE OTHER IS COLLISION ONLY. WENT DOWN $92.00 A HALF.
everything go up, but my pay check is not.
Yes, ALLSTATE SUCKS.
Most auto insurance did go up this year, and while some may have taken a small decrease, it's only temporary. You will see rates on the rise over the next few years.
The reasons are many. Everything is going up. Cost of repairs, parts, labor general wages, etc. A big driver of insurance prices is cost of medical bills and law suit awards. Those have also increased.
Then there are the natural disasters. Most insurance companies are just now starting to price for the losses they took for the 4 hurricanes that hit Florida in 2004. There's also the hurricanes of 2005. Not only were houses affected by these storms but thousands of cars were totaled.
While rates are near the highest levels in decades, they are actually on the decline in certain areas, such as NC, MA, TN, IL, and CA. I'm garaged in Illinois, have Allstate fulle coverage on two cards, and have rates that decrease the last two years.
A number of factors are built into rates, but the main reasons for the decreases are fewer accidents, technology, and competition. Fewer accidents and insurance company competition speak for themselves but the technology one draws the most eyebrows. Insurance companies have been investing in better technology to rate customers. This allows companies to better price match their customer's rates depending on factors such as past driving record and vehicles insured. The rating factor that draws the most eyebrows is credit scoring.
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