Like so many other things these days, auto insurance premium rates have gone up. Forbes Advisor reports that auto insurance costs rose more than 17% from July 2022 to July 2023. State Farm Agent Melanie Bakala knows the rising rates can be an issue for some drivers. Bakala explains that multiple factors impact today’s auto insurance rates.
State Farm Agent Melanie Bakala Describes Why Car Insurance Premiums Increased
Bakala says that after the COVID-19 shutdowns, drivers out on the roads again are noticing their insurance rates are often higher than pre-pandemic days. Bakala says several factors propel the increases.
- Inflation. Inflation in the U.S. was at 3.4% in 2023, historically high compared to the last 15 years. This reality impacts all purchases, including cars, gas and associated expenditures related to auto vehicles. In addition, both new and used cars are now more expensive to buy, repair and replace.
- Rising car repair costs. Supply chain and labor issues remain in our post-pandemic world and still impact vehicle repair costs, causing longer times to fix cars involved in accidents. This lengthier repair time also means policyholders use rental cars longer while they wait for their car to be fixed, creating additional costs. And modern vehicle technology like parking sensors, lane-departure warnings, and advanced batteries add to the rising repair costs.
- Sophisticated features Newer vehicles are equipped with driver safety features – which are great in helping decrease the frequency of accidents, but are also more expensive to acquire, repair and replace, which can contribute to the increase in insurance rates.
- Increased accidents due to distracted driving. A State Farm® survey shows that 67% of drivers said reading or sending texts while driving is distracting/very distracting, and over 70% report that watching a video or recording video (67%) to be distracting/very distracting. Bakala wants you to rethink using the phone while driving and avoid being tempted by other driving distractions that can lead to expensive accidents.
Contact Bakala and Team for a Quote or to Learn More About Auto Insurance Rates
Bakala and her team can walk you through these and other factors impacting your auto insurance rates, and help you find workable strategies at State Farm.
Contact Melanie Bakala and associates for a quote or to learn more about auto insurance. Visit Melanie Bakala State Farm Olympia or Shelton websites, or call 360.426.2428 (Shelton) or 360.972.7905 (Olympia). You can also follow the team on Facebook.
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