Why Auto Insurance Rates Are Increasing This Year
Gas prices have been good and low lately (well, it’s not that nice for all of us ), but that extra money in your pocket could be offset by higher auto insurance rates this year.
Lower gas prices mean more cars on the roads, Forbes reports. This means that there are more accidents on the roads . Robert Harrow of Forbes explains:
Unfortunately, the increase in the number of drivers on the roads has led to an increase in the number of accidents. Many of the country’s top insurers are reporting severe drops in their underwriting revenues – a fact that is one of the main drivers behind the rise in auto insurance prices over the next few months …
To offset the payout, insurance companies are likely to raise premiums and, as Forbes points out, Allstate has already “adjusted its auto insurance prices by posting increases for all three of its major brands.”
As someone who works for an auto insurance company, I can tell you that your premiums will go up soon if they haven’t already. People are driving more than ever, which means a dramatic increase in the frequency of accidents and therefore requires us to pay.
This means that auto insurance companies must increase premiums across the board to offset this trend. So actually save the extra money you get from lower gas prices so you can pay your premium when your renewal proposal comes up.
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