BLOG

Why Did My California Car Insurance Premium Increase?


If you are like many people in California and across the country, you may have noticed your automobile insurance premiums rising significantly in recent years.  This trend is the result of higher than expected claims over a number of years.  Travelers Insurance, for example, recently announced their intention to hike automobile insurance premiums.  The response from Wall Street?  “What took you so long?”

 

A decade ago, auto insurance companies paid out about 95 cents for every $1.00 charged in premium revenues – a seemingly small margin made up for in volume.  Recently, however, companies industry-wide have been paying $1.05 in costs for every $1.00 in premiums.  The increase is based on several factors.

Why Is My Car Insurance Going Up

Increased Crashes

According to the Center for Disease Control and Prevention (CDC), distracted driving results in 1161 injuries and over 8 deaths per day.  The CDC identifies the three main types of “distracted driving” as the following:

  • Visual – taking your eyes off the road;
  • Manual – taking your hands off the wheel; and
  • Cognitive – taking your mind off your driving.

The CDC reports texting results in a driver taking their attention from the road.  Texting also results in a driver taking their eyes off the road for a longer duration as compared with other types of driver distractions such as eating while driving.  For example, the average text composed and sent while driving 55 mph takes the driver’s eyes off the road long enough to cover the length of an entire football field.

As more and more people have gained access to the technology of texting, accidents caused by distracted driving on California roadways has increased.

Increased Costs of Repair

Another factor driving up the price of automobile insurance is the increased cost to repair vehicles.  Thanks to technology, cars today provide additional features that cost more to repair or replace.  For example, the bumper with embedded sensors and a rear-facing camera was designed with an eye towards reducing accidents when backing up.  However, when a car is hit by another car from behind, the cost to replace the bumper necessarily increases, as the camera and sensors must also be replaced.

Increased Use of the Roadways

Americans’ driving patterns have remained largely stagnant since 2004, but now Americans are driving more than ever before.  With gas prices hovering around $2.00 per gallon, and cars more fuel efficient than ever, many Americans are choosing to drive, rather than fly, to vacation destinations.

What Drivers Can Expect

With the increase in crashes, the increase in costs of repair, and the increase in drivers on the road, drivers can expect their insurance premiums to continue to rise in the near future.

Do I Have A Case?

We offer free consultation. No office visit required, we will get back to you within 24 hours.

  • This field is for validation purposes and should be left unchanged.

 

What can we do for you?

  • Answer your legal question.
  • Provide a Free Case Evaluation.
  • Schedule an appointment.

 

Why
Choose Us?

  • Available 24/7
  • Trusted Since 1990
  • Local to You
  • Recovered $350,000,000
  • 5 Star Reviews
  • Free Case Evaluation
  • VIP Service
  • No Win, No Fee

Latest Law Post


May 23, 2019

California Jury Awards $2 Billion In Roundup Lawsuit

A California jury awarded over $2 billion on May 13th, 2019, to a husband and wife who claimed that the herbicide Roundup caused them to develop Non-Hodgkin’s Lymphoma. This  jury award is the largest to date in a Roundup lawsuit. The couple, now in their seventies, had been using Roundup since the 1970s.


May 8, 2019

Best Bike Cities 2019

The California cities of Santa Barbara, Santa Monica, San Diego, Ventura, Lompoc, Goleta, Santa Maria, Long Beach and Carpinteria were all in the top 50 best overall cities for bicycling compiled by People For Bikes in May 2019. Santa Barbara was ranked the highest of all California cities, in 12th place.

 

We are Personal Injury Lawyers representing accident victims throughout California.
For 30 years, the law firm of Nadrich & Cohen, LLP has helped injury victims
obtain the compensation they deserve.