Why Are Car Insurance Rates Rising? Here's What You Need to Know

Does it feel like your car insurance rates keep going up? You're not imagining things, and it's not just happening to you—it's happening to everyone. The reason might surprise you: it's the car manufacturers.

Every year, the number of expensive, high-tech vehicles on the road increases. Features like backup cameras and advanced safety systems are becoming standard, making cars more costly to repair. Let's say there's a 2% chance you'll get into an accident, according to the actuary tables compiled by insurance companies. If you don’t change vehicles or have any accidents, that 2% risk remains the same, right? So why do your rates still go up?

The answer is that the cars around you are changing. While your risk of an accident might stay the same, the cost of repairs is rising as vehicles become more advanced. What might have cost insurance companies $5,000 to cover last year could cost them $7,000 this year.

At Balthazar Insurance, we don't set the rates, but we can help you find all the discounts you're eligible for to offset these inevitable increases. Let us assist you in making the most of your policy, so you can navigate the rising costs of living with confidence.