You haven’t had a ticket in years. You have never filed a claim. You live in a state which ranks 46th in premium costs.
So, why is your auto insurance going up? If it’s not you, then what is it? Why are auto insurance rates in Iowa increasing?
Safer Cars, Riskier Drivers
You are not alone. These are questions nearly every American is asking today. Because nearly everyone’s premium has increased. Even those who choose the low budget insurance route are feeling the squeeze. And, you really only need to look at few statistics to find the reasons.
- The top 20 insurers show increasing losses since 2010. With no signs of slowing.
- The number of car accidents has also increased, with fatalities occurring more often.
- More high tech options on cars are increasing the cost to repair after an accident. For example, replacing a rear bumper includes the cost of the backup camera too.
- Distracted driving is one glaring cause of car accidents, with increases every year.
- The cost of covering medical costs for injuries due to car accidents has increased.
- Those who pursue litigation due to car accidents add to the cost of the claim. More claims, more litigation.
The Risk You Live In
Then, add other risk factors into the mix. Insurers look at yearly mileage, proximity to traffic-jammed cities, claim history in the area, the risk assigned to the particular cars you own and even where you live.
When it’s all taken into account, it’s simpler to understand how underwriters arrive at your premium cost.
For example, the floods in Houston due to Hurricane Harvey effectively “totaled” over a half-million cars. This catastrophe establishes a much higher future risk for those in the affected area.
So, for an insured who drives a late model SUV (expensive to repair or replace), lives near a large city (more cars, more risk), with a young driver (16-24) in the home (distracted driving risk), well, a squeaky clean driving record may have little impact on basic auto insurance rates in Iowa.
It’s not you, it’s the reality of the pool of customers buying insurance. Every year, it seems, we get riskier and cars get more expensive.
There are Ways to Save
However, the news is not all bad. The skyrocketing number of fatalities slowed a bit in 2017, by 1%. And, which state you live in can have a fair amount of leverage when it comes to what you pay in premiums.
In Texas, for example, sharp increases in traffic accidents seemed to correlate with increases in speed limits, some up to 80mph. In response, some states have begun lowering speed limits.
Insurers recognize their customers are looking for any discount available, and have responded with some ways to help.
The Insurance Information Institute recommends shopping around, too.
Talk With Your Agent
Your agent should be able to explain your rates, find ways to lower premiums if possible and discuss specific coverage for your situation. The best insurance rates in Iowa are the ones which cover your needs without breaking the bank.
At Coverage Direct, we impartially shop multiple top rated insurance companies to find the best coverage and rate for you and your family. Feel free to contact us with questions or get a quote now.