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A lot of people I know have said that shopping around for insurance frequently is essential to get the best rates. It seems like being loyal to one company doesn’t always pay off, so I’m thinking I should spend more time getting quotes from different companies to see if I can find a better deal.
I also heard that the cost to repair cars is skyrocketing. One person shared that if their GT3 headlights weren’t under warranty, it would have cost $5,000 to replace them. With parts being so expensive, it’s clear why insurance companies are paying out more for repairs, which likely leads to higher premiums for everyone.
From what I’ve read, it seems like insurance companies aren’t always raking in huge profits. I found out that State Farm lost $13.4 billion in auto insurance alone in 2022. If large companies are losing that much money, it makes sense they would have to increase premiums for everyone else to make up for those losses.
What really surprised me was learning that even if you have a good credit score, your insurance can still go up. I know someone with a credit score of 828 who saw their insurance increase despite not having any tickets. That made me realize that a credit score isn’t the only factor they look at, and there must be other significant things driving up prices.
I recently came across some information that got me thinking about why car insurance rates have been rising.
In 2022, I heard that in Canada, serious injuries from car accidents increased by 8.1% compared to the previous year, reaching 8,851 cases, and the total number of injuries went up by 9.5%, totaling 118,853. While this was specific to Canada, if accident rates and injuries are rising similarly in the US, I can see why insurance companies might raise their rates to cover the increasing costs.
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