Understanding the Rising Auto Insurance Rate Trends in Chicago

Is your Chicago car insurance going up? If so, you’re not alone. Auto insurance agencies say that the cost and frequency of auto insurance claims are rising. To help cover these costs and help make sure you and your assets are properly protected, many companies are raising rates across the industry. Does this have to apply to you? Not necessarily. With that in mind, here are three reasons why auto insurance rates are going up, along with what you can do to help manage your rates:

#1 More miles driven

Certain other forms of transportation are simply too risky right now. Many families are avoiding the airport and bringing back the good old fashioned road trip. Plus, gas prices are exceptionally low right now. This means more miles driven than the year before. Increased time on the road leads to more accidents and more insurance claims, so some insurance companies are adjusting throughout the country to better cover these costs. Be sure you drive as safely as possible, even if you’re on the road for long hours to get to grandma instead of flying this year.

#2 Distracted driving

According to a recent survey, almost one-third of drivers access the internet while driving, and 10 percent record video with their phones. Even voice-activated car commands can divert cognitive abilities and attention. The highest proportion of distracted drivers involved in fatal crashes are 15- to 19-year-olds. Never use the phone while driving. Beyond this, don’t attempt anything else, such as eating or changing the song. Glancing down for a second is all it takes to crash and raise your insurance rates for years to come.

#3 Rising repair costs

As cars get more high tech, the repairs needed to fix them get more and more complicated. What used to be considered a luxury addition, like parking sensors, lane-departure warnings, and even stronger materials, are now widely available on vehicles. While those smart sensors and strong bumpers can help improve safety, they are also more expensive to repair when they’re damaged. Since 2005, the cost of body work has risen nearly 40 percent more than overall inflation. The size of collision claims increased 8.2 percent in just the two years from 2014 to 2016. The best way to avoid an expensive repair bill is to drive defensively and focus on the road.

Reach out to Pronto Insurance! We offer Chicago car insurance for a price much lower than you would expect. We offer affordable car insurance, without sacrificing the coverage you need. Beyond this, we’ll walk you through other ways to lower your monthly payments even more. Together, we can evaluate how increasing your deductible would reduce your monthly premium. You may also want to bundle your home and auto or qualify for other discounts. You won’t know until you reach out and get your personalized quote!