Why do my auto insurance rates continue to go up?

What is the #1 question Joe Peterson Insurance gets asked?

Why do my auto insurance rates continue to go up?

The Answer


People are causing more accidents than ever before! Actuaries and insurance
professionals deal with two terms on a very regular basis (frequency and severity)
and it turns out the trend for both is not good. The frequency of accidents and
property damage claims has risen significantly in the past decade driven by an
increase in storm activity, low gas prices meaning more miles driven, along with
technology such as cell phones and other electronic devices being used in the course
of operating a motor vehicle.

If you’ve been observant over the last decade or so you’ve no doubt seen many
people driving while using these devices. You’ve also seen people doing make up,
shaving, eating and drinking etc – heck, earlier this week I witnessed a gal “tweezing”
a chin hair while driving 70 mph on a freeway in Pasco, Washington. A 2014 report
from USA Today reports that 1 in 4 accidents are now directly linked to cell phone
usage and other distracted driving patterns and the CDC reports 8 people per day
(average) perish in these accidents every day.


The other factor that is measured is called severity – Simply stated this is the
dollar amount measurement of the damages in a claim. With highly technological cars
now common place on the road, a $500 bumper is now $3,000. The cost to reset
airbags after a collision can run upwards of $6,000, an item that was rare in cars just
20 years ago. I’ve even seen auto glass replacements at well over a grand. Bottom
line, the cost to repair your vehicles, satisfy the lawyers and pay your medical bills
are driving costs higher and higher with no end in sight.

What Can JPI Do to Help?

Wish I had some good news and to that end we’ll be talking about some ways
you can help reduce the cost to yourself, your family and the thousands of other
preferred risk policy holders just like you! The staff at JPI Insurance Solutions has
over 100 years combined experience working with preferred risk families, businesses
and individuals. As independent brokers, JPI has many options and a selection of
great insurance carriers to help reduce this risk to you, your property, family and
your pocket book. #insurancematters

Joe Peterson