Why are Car Insurance Prices on the Rise: Key Reasons

With auto insurance bills going up for Arizona residents, it is easy to ask why price increases are happening. There is no one reason, here are a few factors contributing to your increasing car insurance prices:

Inflation is creating price hikes: Almost everything we buy has been costing more since the Covid-19 pandemic due to inflation and lack of supply. Auto insurance is no exception with the national rate increasing by over 17.1% in the last year alone.

New technology is becoming harder to insure: Cars now have newer technology like backup cameras and lane detection modules that are not cheap to replace. With increasing prices on repairs of cars, this affects insurance rates heavily.

Used cars are worth more now than ever: Used car prices are up by 44% compared to what they were 5 years ago. With used cars costing more, they require a higher insurance rate for its repairs.

Reckless and distracted driving is rising: In our technological age, insurers are seeing a substantial amount of claims involving reckless or distracted driving. With almost every driver on the road owning a cellular device, the amount of distracted driving claims will keep increasing.

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Information source: https://www.nerdwallet.com/article/insurance/why-are-car-insurance-rates-going-up

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