With the increase in mobile devices, car navigation systems, and other technology, more and more people are taking their eyes off the road and increasing their chance of being in a vehicle accident. Figures released by the United States Department of Transportation disclosed that in 2016 alone, 3,450 Americans died and almost 400,000 were injured from motor vehicle collisions. The main cause of this distraction was the use of mobile phones. Most of those involved were texting, calling, tinkering with the car’s navigation system, or playing games.
As a result, auto insurance rates keep on increasing.
Distractions = Higher Premiums
The majority of auto insurance providers reported that higher premiums have become necessary to answer for payouts associated with the rise in number of car accidents. A lot of the blame falls on motorists who disregard of traffic rules and use their smartphones while driving. According to the Wall Street Journal, more than ½ of younger drivers (between 18 and 29 years old) claim they text and browse the Internet while sitting behind the steering wheel. Prices are definitely going up but consumers still have an option to reduce their rates.
Reducing Your Rates
It is important to shop around for an auto insurance company that offers better terms and deals. Try checking out insurance premiums every six months up to one year to ensure you are given a fair deal. It won’t be advisable to remain loyal to only one insurance company for several years. Search for different reward programs insurance companies are offering to loyal clients. In fact, some of them give customers perks and rewards for reaching significant goals like a spotless driving record. All insurance companies monitor your driving record and reward those who are safe drivers accordingly.
Bundle Your Insurance Policies Together
Many auto insurance companies provide discounts to consumers who package home and car insurance policies. Some of these providers sell a mix of auto, home, boat, and motorcycle in one bundle. Customers pay lower rates if they decide to purchase in bulk.
There are, of course, other factors that are unique to every individual that has potential to increase the cost of your insurance. One is the consumer’s credit score. Lower scores can mean higher premiums. Your health insurance rate may also affect the cost of your other premiums as well. An insurance company that knows that a motorist with higher health insurance plan will affect the amount the company needs to pay for an accident claim.
Are Self Driving Cars the Answer?
A possible solution for the rising cost of auto insurance is the introduction of state of the art driver-less vehicles. By removing human error from driving, there is a possibility that self driving technology in automobiles could possibly reduce the cost of insurance. While there are self driving cars on the road today and just about every new vehicle has some sort of self driving technology in it, we are still many years away from self driving cars being the majority on the road, but it is fun to think about how safer the roads will be once it happens.