Here's what is driving up auto insurance costs, and how to keep yours low
Accident frequency and severity on the rise
The average cost of car insurance in 2021 has been driven up by a variety of factors, but there are steps you can take to keep expenses for your insurance policy low.
A rise in accident frequency and severity, as well as supply challenges amid higher demand for vehicles and parts, have accelerated the cost increase, according to a new white paper from the American Property Casualty Insurance Association (APCIA).
"This new study highlights recent trends in the U.S. auto insurance market that are leading to increased claim costs and impacting consumers," said Karen Collins, APCIA assistant vice president of personal lines.
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At the onset of the [coronavirus] pandemic, there was an initial decline in the number of miles driven," she added. "However, that quickly changed as we emerged from the stay-at-home orders and Americans are now driving more. In fact, driving has returned to near pre-pandemic levels."
One way to keep your car insurance costs low is through shopping around from multiple providers. Comparing different insurance quotes can potentially save you hundreds of dollars per year. Visit Credible now to compare quotes for your auto insurance policy free of charge.
Fatal crashes rise amid riskier driving
In 2020, more than 38,000 people died in auto accidents, an increase of 7% from the year before, according to the National Highway Traffic Safety Administration (NHTSA). That's also the highest number of fatalities since 2007.
"Insurers are increasingly concerned that since the start of the pandemic, Americans have embraced riskier driving behavior, such as impaired driving, speeding and failure to wear a seatbelt," Collins said. "This is leading to more crashes at a time when the cost of medical care and vehicle repairs is escalating. Safety is the primary concern. However, these trends also impact consumers’ auto insurance costs."
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Car insurance rates vary based on a variety of factors — from your credit score to your driving habits. Use Credible's free tools to shop around and lower your car insurance premium today.
How to keep car insurance costs low
The cost of car insurance is determined by several factors including age, credit history, driving record, level of deductibles, a driver’s zip code and more. Newer and more expensive cars will also likely cause your cost of insurance to go up, too. Here are three ways to save on auto insurance rates:
- Shopping for discounts
- Improving your driving
- Comparing insurers
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Shop for discounts
Different insurance companies will offer discounts for various reasons. For example, teen drivers can get discounts such as a good student discount. Other companies offer better rates for combining with another insurance such as homeowners insurance. Visit Credible to compare car insurance quotes on car insurance coverage from multiple car insurance companies at once.
Improve your driving
Drivers can work on their driving in order to get better insurance rates. A clean driving record with no tickets or at-fault accidents will get drivers better average car insurance rates than a poor driving record. Violations will off a driver's record after a certain period of time, but they can also take proactive steps such as taking a driver's safety course to clear some violations like speeding tickets from their record.
Compare multiple insurers
Since various providers offer better rates for a driver’s individual situation, it's important to compare several auto insurance companies and their coverages before signing up for a policy. Credible’s car insurance marketplace simplifies this process and allows you to find the best car insurance company for you. Get started today.
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