Even if you are a good driver your automobile rates are still going up
What is happening with Auto Insurance costs?
The Consumer Price Index (CPI) for Auto Insurance is up 21.5% since 2012. It is the largest 5 year growth of Auto Insurance cost in the last 24 years.
The driving force in the upward march in premiums is the Auto Industry is finding it difficult to sustain a profit. In 2016, the average combined loss ratio for the nation’s 10 largest personal auto insurers increased to 107.1%. meaning the major insurers lost 7% for the year ending 2016.
Why are the costs for Auto Insurance increasing?
The major Personal Auto Insurance Carriers are unprofitable due to increases in cost of frequency losses as well as increases in cost severity. The frequency cost is being impacted by driver error from the increased misuse of electronic devices such as Cell Phones, Texting, Laptops, IPad or any other electronic devise while operating their vehicle causing the operator to take their eyes off the road. The increase in the severity of the auto claims has to do with the increased cost to repair a vehicle due to all the new censors and safety equipment to make cars more Self Autonomous. In today’s auto body repair world, not only is the body shop repairing the physical damage to the car, there is the additional cost to repair the electronics and program the computer in the car.
What can you do to control you Auto Insurance cost?
Contact our insurance agency and let us review your current program and provide solutions and recommendations to control your insurance costs for your personal insurance needs.
Call my office at 201-460-8400 ext. 302
MERWIN & PAOLAZZI INSURANCE AGENCY, INC.
Michael J. Merwin, CPCU, CIC, CRM, CRIS