Why are my auto insurance rates increasing? I haven’t had an accident.

Auto insurance rates in Colorado have been fairly stable over the past several years…why are they starting to increase?  I talk to clients all day and there seems to be a perception that the amount they pay is directly related to whether or not they’ve had an ‘at fault’ accident.  While your driving record is definitely one factor, your rates are based on many factors….here are the factors causing the recent increases.

1.  The increasing costs to repair increasingly complex, technically advanced cars.

2. The ever increasing medical costs being paid for insureds hurt in vehicle accidents.

3. Distracted drivers are causing more and more auto accidents.

4.  Distracted pedestrians looking at cell phones while crossing streets and parking lots are being hit by vehicles at an alarming rate. It takes both parties to be aware of each other to avoid accidents.

5.  The cheap price of gasoline is enticing people to drive more.  More cars moving around equals more cars colliding.

6.  Increased weather severity like hail and floods are causing more damage to vehicles.

There are a lot more factors going into the pricing of auto insurance, but the items listed above are the culprits of currently increasing auto insurance rates.  I hate being the bearer of bad news, but……

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