Here’s what drives car insurance costs up and how to keep yours low

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Auto insurance costs rise as fatalities increase. Here’s how you can save. (iStock)

The average cost of auto insurance in 2021 has been driven by a variety of factors, but there are steps you can take to reduce your insurance policy expense.

An increase in the frequency and severity of accidents, along with supply issues amid increased demand for vehicles and parts, have accelerated the rise in costs, says new white paper from American Property Casualty Insurance Association (APCIA).

“This new study highlights recent trends in the US auto insurance market that are driving up claims costs and impacting consumers,” said Karen Collins, assistant vice president of personal lines at APCIA .

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At the start of the [coronavirus] pandemic, there was an initial drop in the number of kilometers traveled, ”she added. “However, that quickly changed as we rolled out stay-at-home orders and Americans now drive more. In fact, driving has returned to near pre-pandemic levels. “

One way to lower your auto insurance costs is to shop with multiple providers. Comparing different insurance quotes can save you hundreds of dollars a year. Visit Credible now to compare free quotes for your auto insurance policy.

Fatal accidents increase in a context of riskier driving

In 2020, more than 38,000 people died in road accidents, an increase of 7% compared to the previous year, according to the National Highway Traffic Safety Administration (NHTSA). It is also the highest death toll since 2007.

“Insurers are increasingly concerned that since the start of the pandemic, Americans have adopted riskier driving behaviors, such as impaired driving, speeding and not wearing the seat belt, ”Collins said. “This is leading to more accidents at a time when the cost of medical care and vehicle repairs is rising. Safety is the main concern. However, these trends are also impacting consumers’ auto insurance costs.”

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Auto insurance rates vary depending on a variety of factors, from your credit score to your driving habits. Use Credible’s free tools to shop and lower your auto insurance premium today.

How to reduce auto insurance costs

The cost of auto insurance is determined by several factors including age, credit history, driving record, level of deductibles, driver’s zip code, and more. Newer, more expensive cars will likely increase the cost of your insurance. Here are three ways to save on auto insurance rates:

  1. Shop for discounts
  2. Improve your driving
  3. Compare insurers

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Buy discounts

Different insurance companies will offer discounts for various reasons. For example, teenage drivers can take advantage of discounts such as a good student discount. Other companies offer better rates to combine with other insurance such as home insurance. Visit Credible to compare auto insurance quotes on auto insurance coverage from multiple auto insurance companies at once.

Improve your driving

Drivers can work on their driving in order to get better insurance rates. A clean driving record without a ticket orfault accidents will get drivers better auto insurance rates than a bad driving record. The offenses will be removed from a driver’s record after a certain period of time, but they can also take proactive steps such as taking a driver safety course to clear certain offenses like speeding tickets from their record.

Compare several insurers

Since various providers offer better rates for a driver’s individual situation, it is important to compare multiple auto insurance companies and their coverages before purchasing a policy. Credible’s Auto Insurance Marketplace simplifies this process and lets you find the best auto insurance company for you. Start today.

Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.


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