Why is my Auto Insurance premium going up?

By Remmie Butchko, CIC

Georgetown Insurance Service, Inc.

Silver Spring, MD

We are constantly asked why auto insurance premiums are going up so regularly.

Unfortunately, I can tell you from a recent life experience.

I was at a swim meet, and another driver was nice enough to “hit and run” the front end of my car.

What would have been a fender-bender 10+ years ago turned into a $5,600 claim due to (a) 2 broken sensors, (b) a cracked front side camera, (c) a 1-piece collapsible bumper that needed to be replaced in whole, and (d) a fog light…which has never been used (didn’t even know I had “fog lights”).

The damage looked so minor that I thought it might be under my $1,000 deductible.  Unfortunately, after taking the car to the shop the mechanic basically laughed in my face when he looked at the damage. He said “Buddy, you’re definitely going through insurance on this one.”

While there are many other factors, that are leading to higher insurance claims and higher insurance costs (like distracted driving), the reality is that we don’t have $500 fender benders anymore. Automobiles are basically computers on wheels, and they are built to crumple versus stand up to a collision.

So, here are some life lessons that I’ve gained from my recent experience:

  1. Make sure you choose carefully where to park at swim meets.
  2. Make sure you use your fog lights as often as possible assuming you know that you have them.
  3. Always have adequate limits…even if your car doesn’t have the latest and greatest others on the road might.

Disclaimer: All data, information, and opinions provided on this article, newsletter, or blog is for informational and educational purposes only. While every caution has been taken to provide readers with the most accurate information and honest analysis, please use individual discretion before making any decisions based on the information in this article, newsletter, or blog. Georgetown Insurance Service, Inc. is not responsible if its readers happen to experience loss, injury, or damage resulting from its display or use. All information is provided on an as-is basis. This article, newsletter, or blog does not represent the thoughts, intentions, plans, or strategies of any specific Insurance Carrier, Georgetown Insurance Service, Inc. partner or affiliate.
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