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Blacksburg VA 24060
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3 Reasons Auto Insurance Rates are going up

 

Car insurance is an ever changing industry as auto makers and insurers alike are trying to keep up with the advances in technology as well as the growing amount of drivers that are on the road.

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Here are 3 reasons that many companies will be increasing their rates in the near future.

  1. Gas and the Economy – Because gas prices have dropped significantly over the past two years, we are seeing an increase in drivers on the road due to it being more affordable to travel in their vehicles. Conversley, cheaper gas means that consumers are purchasing more cars because they can afford to. The economy is on an upswing at the moment and that means there are simply more families and drivers who are taking advantage of the lower prices. (http://www.forbes.com/sites/robertharrow/2015/12/15/heres-why-your-auto-insurance-will-likely-cost-more-next-year/#7fad261f6958)
  2. Updated Technology – Not only are cars now being made with computer systems and high-tech sensors, the bodys of the vehicle are becoming more efficient in safety, meaning more expensive to fix. While having these safety features is a step in the right direction, the cost to repair them if there is an incident is still very high. (http://www.propertycasualty360.com/2016/01/28/dealing-with-the-rising-costs-of-car-crashes)
  3. Population growth – the population in the United States grows by one person every 15 seconds according to the government census (http://www.census.gov/popclock/). This, coupled with the improvements of medicine and health care means there are going to be more young, old and middle-aged drivers on the road in the next few years. The probability of an accident increases with each additional driver on the road, especially as more younger drivers get behind the wheel.

While auto insurance rates are a difficult idea to understand, it is the most necessary insurance policy to have. We always suggest having at least 250/500 liability limits, not only because it is inexpensive to increase limits, but because a multi-car accident can be very costly.

To receive and auto insurance quote from Brown Insurance, please call us at 540-552-5331 or fill out our quote form on our website.