Countrywide auto insurance rates are on the rise.
In fact they are increasing at a rate that the industry hasn’t experienced in more than a decade. There are 5 primary factors contributing to the increase.
It is the responsibility of the insurance agent to be prepared to discuss premium changes with their customers and educate them on options to assist in ensuring that customers is adequately covered in the event of a loss.
Record low gas prices are leading to record consumption levels. This means people are driving more miles, which is leading to more accidents.
The improving economy is putting people on the road for longer hours and more miles.
This has led to more accidents and in some cases some very severe & costly occurrences.
Increased Cost of Claims
Technological advances in cars make them more expensive to repair and increase labor costs.
Low Interest Rates
P&C insurance companies primarily invest in US bonds. Interest rates today are at historical lows, which is challenging for industry profitability.