Why Has Our Car Insurance Gone Up So Much?

If you own a vehicle, you’ll probably noticed that your insurance has gone up, and not by just a little bit. I saw a message this week in the daily email I get from tech guru, Kim Komando, talking about this very topic.  

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Kim shared some insight on why this is, and there are several reasons. 

First, we start with the bumpers. These used to be on the vehicle to try and limit the damage if something hit it or you hit something. Now bumpers contain cameras, sensors and computers for crash prevention, and as you can probably imagine those drive up the cost significantly.  

We’re shedding light on another reason why car insurance is costing much more and it’s because the headlights are not just the kind we can pop out and back in easily. These are more complicated LED lights and come with a much higher price tag. 

If you drive an electric vehicle, they cost more to repair, roughly about $2,200 more than gas powered vehicles. And repairing an electric vehicle can take up to 40% longer as well.  

Manufactures use aluminum in building vehicles to have better fuel efficiency and for a safety reasons. But aluminum isn’t as easy to repair and cost more than steel.  

Some insurance companies offer you the option to add a tracker to your vehicle so you can prove that you’re a safe driver so that you can have lower insurance costs. Keep in mind as you consider this that these trackers document your braking, how much you drive, how fast you go and other data.  

Those who oppose this idea say for the all the information they track; the discount is minimal. Plus, again they are documenting all of this data on you, do you really want that? 

If you saw a tremendous increase in your rate, it may be worth calling your agent or insurance company to see if there’s a way to bring that down. It may even be worth shopping rates around.