(BPT) - Consumers are facing increasing costs on virtually every purchase these days and auto insurance is no exception. While skyrocketing costs of this auto-related expense can be attributed to everything from parts replacement to service - even health costs as a result of accidents - consumers can better manage these increases with thoughtful study and attention to detail.
Some of the common causes for higher insurance rates are Inflation, car accidents, extreme weather conditions such as hail, hurricanes and wind, along with increased vehicle theft claims.
Mercury Insurance has partnered with financial literacy influencer Sam Jarman to highlight specific ways consumers can address these rising costs.
"Your car is the second biggest expense for most people, right behind your home, and car insurance is a big part of that," said Jarman. "Checking rates and coverage with your Mercury Insurance agent makes sense along with choosing a car with low maintenance costs."
According to Consumer Price Index data released earlier this year, car insurance rates are up almost 21% year-over-year for the 12 months which ended in February. The last time car insurance rates rose that much on an annual basis was 1976.
Here are some auto insurance statistics recently released from Forbes:
- The national average cost for car insurance is $2,150 annually for full coverage.
- The cost of auto insurance increased by 63.8% between 2014 and 2023.
- The average car insurance cost for 16-year-old drivers with their own policy is $8,765. The average rate for 17-year-olds is $6,829.
- Car insurance is cheapest for 60-year-old drivers, averaging $1,915 annually.
- The vast majority of drivers have comprehensive and collision coverage. In addition to buying liability car insurance, 79% of insured drivers buy comprehensive coverage and 75% purchase collision coverage.
- A staggering one in seven drivers have no car insurance.
"Our goal is to help our customers get the best rates possible because we know that every dollar counts." said Justin Yoshizawa, Director, Product Management, State. "We encourage consumers to build a close relationship with their agent and discuss what discounts they may be eligible to receive. The answer might be surprising."
Mercury offers the following tips for lowering your insurance costs:
Review your deductibles with your insurance agent - It is recommended that you review your coverage and deductible with your Mercury agent at least once a year. Their wisdom and experience can help you make wise decisions regarding your insurance.
Explore car insurance discounts - In addition to bundling your home and auto insurance, Mercury offers discounts for multi-car, good drivers, good students and auto pay. Your agent may have additional discounts to offer.
Let Your Insurer Track Your Driving - Most insurers offer discounts for customers who install telematics. This technology allows your insurance company to collect information regarding your mileage and driving habits. This can also provide valuable information regarding your driving as well as saving you money.
Drive a safe car with low repair costs - According to Bankrate, some of the cheapest cars to insure are the Subaru Outback, Honda CR-V and Honda Pilot. Also, look for cars with lower repair costs such as the Toyota Corolla, Toyota Prius and Tesla Model 3. Doing some research before you purchase a vehicle can save you money over the length of ownership.
Install an anti-theft device on your car - Drivers may receive an additional discount on your auto insurance if you install an anti-theft device on your car.
Before you buy a car, compare insurance costs - You can get a fast and easy quote from your Mercury Insurance agent. To receive a quote, you can reach us at 844-514-2893.
To learn more about common types of auto insurance discounts, visit https://www.mercuryinsurance.com/resources/auto/understanding-types-of-auto-insurance-discounts.html.
For more information on your auto insurance, you can reference the Insurance Information Institute.
