• Dan Frankel

Why Did My Auto Premium Increase?

Updated: May 17

At Acacia Insurance, we are just like you. We drive cars, we have families, and we purchase our own insurance policies. We understand that nobody wants to pay more for insurance, and some premium increases seem arbitrary…especially for claim free drivers with good driving records.


Insurance premiums are not arbitrary. There are technological advancements, national trends, and even economic factors which impact auto premiums.


What is going on?


5,000 trips to the moon and back.

43% Increase in collision severity and a frightening increase in traffic deaths.

42% Increase in collision frequency.

40.5% Increase in used car prices.

20% Increase in the average cost to repair.

Each day 9 people are killed and 1000+ injured in crashes attributable to a distracted driver.

Sure, today’s cars may be safer, but research by the Insurance Research Council shows that the severity (cost) of auto claims is increasing at a rate that outpaces the decline in claims frequency. The rising costs of medical services and increase in expensive safety features in newer cars will continue to increase the average cost of claims. (-Verisk)


Ready to learn more?

What’s the most effective way to manage your auto insurance premiums? Acacia Insurance has been helping to make the unexpected uneventful since 1988, and we look forward to working with you. Please contact us with questions and for additional information.




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