Why are Auto Insurance Rates Increasing?
TRENDS IMPACTING AUTO INSURANCE RATES IN THE DENVER AREA
The Denver area has seen a great influx of new residents. Today, Denver is one of the fastest growing US cities according to US Census data. http://bit.ly/2Dm6gKS
With all these newcomers to the area, comes more cars which leads to more congestion, more accidents and finally more claims. As insurance companies pay out on these rising claims, we as the consumers, share in the expense that the insurance carriers face by paying higher insurance premiums. Here, at Denver West Insurance Brokers, we want to break down some of the trends that the Denver insurance market is observing. One obvious trend is: as an area grows, so do the number of drivers on the road. This, along with changing technology, more driving distractions such as computer screens on the dash, cell phone use while driving, rising costs of vehicle repairs, rising costs of medical bills all work together to create a perfect storm of rising insurance rates.
Distracted drivers in come in all shapes, sizes, ages and experience levels. Even if you’re not one today, you could become one at any moment — in the time it takes you to answer your cell phone or check the kids in the back seat when you’re driving. If you or someone else you know thinks you can drive just fine while talking on your phone, think about this: More than 450,000 people were injured in crashes that reportedly involved distracted driving in 2009, according to the National Highway Traffic Safety Administration. More than 5,000 of those people died.
Insurance rates are quite volatile and subject to influence by many outside factors. As long as drivers on the road continue to increase, the price of vehicles and their parts go up, and the distractions that lead to accidents go up, the price of auto insurance will continue to rise. We as drivers need to limit the distractions by putting away our technology, waiting to answer texts or phone calls, and working together to keep auto accidents and claims down. http://cbsn.ws/2Dxw8qs
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