Study: Several Factors Causing Auto Insurance Premium Spike
Nov. 27, 2019—Car insurance rates rose significantly over the last decade, according to recent analysis by CNET.com. Indeed, research shows that it's getting more and more expensive to insure a vehicle.
Recent research from Motus noted that, on average, car insurance premiums have risen every year since 2013, and, since 2011, insurance premiums have risen 23 percent.
Data suggests that insurers are paying out more frequently than before. And, when that happens, insurance companies typically raise rates to offset losses. In the U.S., the number of crashes has increased over the last decade, even though fatalities continued to decline. Additionally, pedestrian fatalities have continued to climb, as noted in a recent National Highway Traffic Safety Administration report.
The Motus report analyzed what it would cost to repair a 2010 Chevrolet Malibu following a front-end collision. Nine years ago, that job would've cost $1,652 on average. Today, a 2018 Malibu needing similar repairs would result in a $3,627 bill.
Ultimately, the average repair cost following a vehicle crash reached $3,053 last year.