Why Arizona Auto Insurance Rate have gone up?

Man Traveling By Car On The Desert Road

The average amount that people in Arizona pay for their car insurance is about $133 per month. People who are known to have a lot of car accidents will have to pay a higher rate like around $300 per month. In the past, people with clean driving record’s tend to pay less, but that is not the case in the future. Based on statistics and careful analysis, Arizona drivers could be paying more for their car insurance in the future the very reason why you should know what to look in an auto insurance. A bill at the Arizona legislator could increase car insurance cost for drivers. This can severely impact the insurance industry. State Senate Kate Brophy- McGee has introduced a bill that will increase liability coverage for drivers in Arizona. It will increase the minimum liability coverage from $15,000 per individual to $25,000, and the average accident coverage will be between $30,000-$50,000. This will ultimately raise the drivers premium by $80 per year. Unfortunately, there is a fear that high auto insurance cause might lead to more uninsured drivers.

Reasons why the auto insurance cost has gone up in Arizona for the past couple of years:

Increase accident rates

For the past two years, the severity of the car accidents has gone up. After all, people love to text and drive at the same time. For example, there has been a 12% increase in bodily injury, and 15% increase in the cost of the collision. This can be very costly and detrimental to the auto insurance industry. To make matters worse, the rate of fatality has also gone up. Insurance companies have to take responsibilities and paid those rates, that is why they decided to increase driver’s premium rate. They have to raise their rates high enough to compensate for the 12% to 20% increase in automobile accidents.

Cars cost more than they used to

Car prices have increased over the past years. If there are more car accidents combining with the fact that cars are costing more each year, then that means the cost of the accident will rise tremendously. That would also mean that the insurance company will have to pay more. This is why insurance rates in Arizona are getting higher every year.

DUI and speeding tickets have gone up

There have been reports that DUI and speeding tickets have gone up in the state of Arizona. When people drive under the influence or speed through the road, they are very prone to accidents. This results in severe crash and fatality. This can be very costly for the insurance company. Plus, even if there is no crash, a speeding ticket or a DUI can raise the driver’s insurance rate. Because of these reckless driving, the insurance company will have to elevate their premium rates in order to compensate for the rise in DUI and speeding tickets.

Arizona gas price has dropped

The gas price in Arizona is lower than other states. The greatest part is that; the gas price has been dropping over the course of the years. The low gas prices will result in more people getting in the car and driving. If we combine that with social media impact, then you have a wonderful multitasking driver. The increased rate of driving and texting can result in a collision. This would be why insurance companies in Arizona have experienced a high premium rate.

Even if you are an amazing driver and obey every stop signs, your insurance rate will still go up. Since 2012, practically all insurance companies have increased their rates. The consumer price index for auto insurance has gone up by 21.5% in comparison to the CPI which is 4.5% over the same five-year period. Keep in mind that auto insurance is not doing this to be mean, but the rise in car accident rates and fatality have taken a lot of money out of their pockets. They have no choice but to raise driver’s premium rate in order to compensate for the cost. Keep in mind that even if you have an excellent driving record, but a friend of yours who have gotten an accident and uses the same insurance company can also affect your rate. At the end of the day, it’s important to talk to a various insurance company and compare their rates. At Gebhardt, Insurance agents are very knowledgeable about the statistics and the rise of car insurance premium. They can provide you with all the information you need to make an informed decision. They can also go above and beyond to find the proper premium rate that you can be happy with.

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Steve Gebhardt

Gebhardt Insurance Group was honored by AAA Insurance for being the top New Policy Agency in Arizona for 2013 and achieving the "Emerald Achievement Award."

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