What You Should Know About Auto Insurance Rates

​It is said that auto insurance rates are likely to boost in 2019. But, before diving in to know the reason, this article will provide you all the things that you must be conscious of when it comes to auto insurance. 

Defining Auto Insurance
Auto insurance is an agreement between you and the insurer that safeguards you from financial damage when an accident or theft happens. This policy is necessary for you to have if you need to register your vehicle and drive.

The Consequences When You’re an Uninsured Driver

• Ticket for driving without insurance plan: This can be a costly affair. The fine can be up to $5,000, depending on the level of offense. There’s also a possibility to place you behind bars — two to three years imprisonment.
• You’re deemed at-fault in the accident: Once proven that it’s your fault, you need to shoulder the medical and damage expenses you caused to someone else. This is something that can break the bank.

The Reason Why Auto Insurance Rates Continue to Increase
These factors have a major impact on the rise of auto insurance rates:

• Record-setting natural calamities: As an example, the 2018 wildfire season in California had significantly impacted a lot of people. The fire destroyed properties, including their vehicles.
• Augmented distracted-driving mishaps: The increased frequency in auto crashes contributes to future insurance rate hikes. According to observation, numerous drivers encounter accidents due to using their phones while driving. In 2015, 2.443 million people were hurt in distracted driving collisions. This is a 9.2% increase from the 2011 car accident report.
• The emergence of more tech-loaded vehicles that are costly to repair: For added safety, all new cars are obliged to have rearview video systems, as per the NHTSA’s regulation. This is an increase in insurance claims cost that insurers have to pay out.
  
  

Some insurers failed to turn an underwriting profit in current years. But, the factors mentioned above are sure indications that drivers will pay more for auto insurance this year. Insurers explain that they raise car insurance rates because they need to adjust for steadily increasing losses (cost of car insurance claims).

One More Thing Before You Go
If you’re driving, you can protect yourself from liabilities and costly expenses when an accident happens. Get the basic auto insurance plan from a trusted insurance provider.

At American Eagle Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (225) 667-7377. Get your free quote today by CLICKING HERE.