Developments in vehicle technology and efficiency are always exciting. But don’t overlook another area that can impact your ability to drive: your auto insurance. A lot is happening in this area, as well. And with so much other car news grabbing our attention, it pays to take a look at trends in the insurance industry that might impact you or even benefit you financially.
With that in mind, below are four major trends in the auto insurance industry that every driver should know about.
1. Pricey Auto Technology Has Impacted Overall Cost of Insurance
Inflation has had an impact on many things. But one factor that may surprise you: the cost of repairing even small, technically advanced systems in vehicles today. Technology is built into everything from engines to electronic sensors to dashboard features. This can make it more expensive to fix or replace parts after a minor collision. Even if your particular vehicle is older, your rates might still be affected by overall trends in auto accidents.
2. There Are Ways to Save Money on Auto Insurance
Fortunately, there are still numerous ways to potentially save money on auto insurance. Plans get priced differently based on a number of factors, such as whether you make payments monthly or annually and what deductible you choose. The Zebra, which tracks auto insurance trends, reported multiple ways drivers have saved on their auto insurance:
- “Motorists with usage-based insurance (UBI) policies save about 3% on their car insurance premiums.”
- “Raising your deductible from $500 to $1,000 saves an average of 13% on your total insurance rate for the year.”
- “A driver who maintained 100/300 liability coverage for five years [might] save 15%.”
While these figures don’t apply to everyone, they are a reminder to ask about discounts, usage-based policies, and other possible ways to save dollars on your plan.
3. Commercial Drivers & Rideshares Like Uber and Lyft May Need Special Coverage
Do you drive as part of your job? More than a third of drivers in the U.S. use rideshare apps, and that number is growing. Rideshare companies like Uber and Lyft have changed how we drive and who makes money using their personal vehicles. Whether you’re a Lyft driver or you use your pickup truck for work, it’s important to be sure you have the right type of coverage. Like other professions that require vehicle usage, your work habits can potentially affect the type of coverage you need.
If you sometimes transport people or goods for work, talk to an insurance agent about commercial insurance coverage to make sure you’re protected. Maybe what you already have is fine. But the last thing you want is to discover after an accident that your plan is insufficient to cover your financial needs.
4. It’s Important to Shop Around for the Most Competitive Insurance Rates
With so many insurance companies out there, it can be a little overwhelming to figure out which one is right for you. Many things – where you live, whether you’ve been in an accident, what car you drive and even your age – can play a role in determining what a company might charge you.
Insurance rates have gone up over the last decade along with other routine expenses. Since drivers are legally obligated to be insured, it makes sense to shop around and get the best coverage and rates for your needs. Once you get multiple quotes from an insurance agent you’ll have a better picture of the options available to you.
Ask About Getting the Best Auto Insurance Coverage at AMIGO This Year
It always feels good to kick off a new year on the right foot, and that includes getting the right insurance coverage to protect all the drivers in your household. An agent at Amigo Insurance will help you find the lowest rates while making sure the necessary bases are covered for you and your whole family. We provide coverage for drivers throughout the Midwest, in Texas, even in Mexico, and as we grow so do our coverage areas.
Contact Amigo Auto Insurance to find the best insurance quotes today.