Auto insurance companies consider a variety of factors, such as driving history, credit score, and where you live, when calculating your insurance rates. In recent years, the cost and frequency of claims have increased, causing drivers nationwide to see their premiums rise at the time of their policy renewal. While there are some factors you can control and some you can’t, here are some of the top reasons for industry-wide rate hikes. 

Why You Might Experience an Auto Insurance Premium Increase

1. Natural Disasters 

With more parts of the country experiencing natural disasters such as fires, hurricanes, flooding, and hailstorms, more people are filing insurance claims. These types of claims are typically covered by comprehensive insurance, which will help pay for the repair or replacement of a vehicle affected by such catastrophes. This has led to a significant loss for auto insurance providers, who must increase premiums as a result.

2. Distracted Driving 

Despite stringent laws restricting cell phone use while behind the wheel, distracted driving continues to be a problem in most states. The Centers for Disease Control and Prevention reports that more than 1,000 injuries occur each day due to distracted driving. People are not only taking their attention away from the road to talk and text, but also use GPS, read emails, and update social media. In turn, auto insurance rates go up to offset the costs of distracted driving accidents.

3. Rising Repair Costs

Many modern vehicles are built to include technologically advanced systems, such as backup cameras, parking sensors, and lane change warnings. While these devices help to improve safety and the overall driving experience, they involve complex components that are expensive to repair. To make up for these losses when a claim is filed, auto insurance companies are likely to charge more for coverage. 

If you’re looking for affordable auto insurance, turn to Ohio Insurance Center Agency. For nearly 45 years, residents throughout the Greater Cincinnati, OH, area have relied on them for quality coverage solutions and assistance customizing the perfect policy. As an independent agency, they can provide you with access to a variety of products from a network of reputable carriers to ensure you receive the best protection and pricing. Call (513) 522-6300 to schedule an appointment or visit them online to request a free quote.