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New Report Indicates Most American Drivers Have Higher Car Insurance Rates for 2019

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car insurance industry self-driving driverless cars Photo: Pictures of Money

The start of a new year is a great time to review annual expenses. And one primary expense for American drivers is auto insurance.

According to car insurance search engine, The Zebra, vehicle insurance rates are higher for many U.S. drivers this year. Per this organization’s recent 2019 State of Auto Insurance Report, 83 percent of drivers nationwide have experienced an insurance rate hike. In fact, the average annual cost for car insurance is 23 percent higher than what it was just eight years ago, back in 2011.

Most expensive cities

It turns out that rates are higher in certain areas of the U.S. over others. Some areas pay as low as $500 a year, while others are paying more than $5,000, according to The Zebra director of market insights Alyssa Connolly. Three of the most expensive cities to insure a car include Detroit, Michigan ($5,464); Hialeah, Florida ($2,997); and New Orleans, Louisiana ($3,686).

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Some reasons for the higher rates

While specific circumstances like profession, marital status, and driving record are just a few conditions that can impact an individual’s insurance premium, it turns out there are more. Per Connolly, your credit score, gender, driving habits, and region’s weather are additional factors that can contribute to a higher auto insurance rate.

Yet another reason behind the price hikes is distracted driving. According to Dayton Daily News, the average insurance rate penalty is 20 percent for distracted driving habits. Many insurance carriers employ telematic apps or plug-in devices to track driver’s roadside behavior. These can result in an insurance rate discount or increased price, depending on how safe or how dangerous an individual’s driving record is.

Additionally, more new vehicles are incorporating the latest safety technology which makes repairs pricier. So, if you’ve recently purchased a new car, this alone could be the reason for a higher insurance premium.

Check out browse this article on how to choose an appropriate car insurance coverage limit if you’re in the market for a new auto insurance policy.

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News Source: Dayton Daily News