concept of car insurance

If you have recently noticed that your auto insurance premium has increased, you’re not alone. Millions of Americans are confused as to why they are paying more for coverage and what prompted the change in rates. If you haven’t filed a claim recently or increased your coverage, then you may also be wondering why your premium has increased. While auto insurance rates are determined from a variety of factors, take a look at just a few of the most common reasons why premiums have increased.

Uninsured drivers

You know you’re doing the right thing by having auto insurance. However, there are still many motorists who drive without holding any form of coverage. When these drivers get into accidents, the other motorists involved then have to rely on their underinsured/uninsured motorist coverage to cover their medical fees and auto repair costs. When this happens, premiums increase to account for more people cashing in on this part of coverage.

Car theft is on the rise

Car theft is something that not even the pandemic stops. The vulnerability of some vehicles to keyless entry theft, where the thief intercepts the signal between the keyless fob and the car, is of particular concern to insurers. Although technology in cars tends to increase the safety of the vehicle, hackers are getting smarter. When the number of car thefts continues to rise, you may find your auto insurance premiums increase in order to offset the risk.

Sophisticated technology pushes up repair costs

Speaking of technology in cars, those digital dashboards, blind-spot detectors, parking sensors, and emergency braking devices all make the car safer to drive – but are expensive to repair when things go wrong. If a new vehicle with all this tech is involved in an accident, it can easily cost more than a vehicle without all the technology to repair or replace. Even minor bumps can skyrocket insurance claims because of the cost to replace the technology inside mirrors and bumpers. The increasing use of sophisticated technology has also resulted in insurers categorizing more vehicles as uneconomical to repair.

You have changed jobs

If you changed jobs, whether it was because of the pandemic or not, you may have only just updated your car insurance details. If your premiums have risen since the change, it could be because the insurer has factored in the risk associated with your new occupation. For example, if you went from an office worker to a delivery driver, you will carry more risk now that you are driving on the roads more frequently. As a result, your premiums will increase. Talk to your insurer about the effect your occupation has on your premiums.

Affordable auto insurance doesn’t have to be hard to find. Talk to the team of professionals at Sausman Insurance Agency for help finding reliable auto insurance coverage. We serve Mifflintown, Millersburg, and beyond with quality policies. We look forward to assisting you to secure reliable and comprehensive coverage that suits your needs and budget.