More frequent and severe accidents are generally the root cause of auto insurance premiums to rise. Nevertheless, these increases draw attention to the auto insurance world as regulators and other industry groups work to find ways to improve insurance underwriting and premiums. Below are three emerging concerns for the world of auto insurance.
Each state has their own mandatory requirements around auto insurance. These requirements include minimum limits for various types of coverage, as well as the type of information auto insurers can use in the underwriting process. In May 2019, Michigan regulators proposed a bill that would change the way insurers use information to determine premiums for drivers. Under this bill, insurers would no longer be able to set rates based on non-driving factors like ZIP codes, marital status, gender, and credit scores. This bill, while still in the works, highlights the growing trend for auto insurers to avoid using certain personal information to determine auto insurance premiums.
More Vehicles on the Road Globally
More and more vehicles are on the road across the globe. This is due to growth in the overall global economy as well as low gas prices. In particular, continued development in emerging markets are creating an environment where more and more people are driving vehicles. More vehicles in emerging markets lead to an increase in accidents, which then also tend to lead to adverse impacts on premiums.
More Auto Accidents
As mentioned above, the number and severity of auto accidents continues to rise, which can have a connection to increases in auto insurance premiums. Over the past year, severe weather led to increases in auto losses. Wildfires, floods, and severe storms can be one of the leading causes of auto accidents. Several other factors contribute to this increasing in accidents trend including the following…
Drivers should be aware of these factors and make any necessary changes to minimize the chance of an accident due to the above factors. Unfortunately, though, accidents can happen, and that is why we have insurance.
By reviewing your auto insurance policy and understanding your coverage and limits, you may find opportunities to reduce your premium while at the same time enhancing your coverage. The FitzGibbons Agency is right here in Oswego to help you in this review. Additionally, we can then help you consider alternate quotes to make sure your premium is as competitive as possible. As a Trusted Choice Independent Agency, we are able to compare quotes from several insurance carriers to further ensure you have the right coverage.
Auto Insurance can be Tricky! Just Ask Fitz!
John FitzGibbons FitzGibbons Agency 44 East Bridge Street Oswego, New York 13126