Distracted Drivers to Blame for Rising Car Insurance Costs

frustrated_man_with_billsIf you've tried to renew your car insurance recently, you may have noticed that premiums have increased.

Car insurance costs go up for many reasons, including accident history and economic growth, but rates have recently spiked for an unexpected reason: the increase in accidents caused by texting and driving.

Distracted Driving Can Have High Costs Even Before a Crash

Insurance premiums have been steadily climbing for the past decade, with many U.S. customers paying $1,000 or more for their policies each year. Since accident rates have also been on the rise, insurers raise rates to minimize the loss of profits due to accident payouts. A major factor in these accidents is distraction from a smartphone or other electronic device, making distracted drivers largely responsible for the uptick in coverage costs.

Consumers may suffer car insurance headaches due to:

  • Young drivers. Insuring young people is far more costly than insuring older drivers. Teenagers and drivers in their early 20s have less road experience, are more likely to speed or drive recklessly, and are more likely to use cell phones while driving. Even if a driver between the ages of 16 and 24 is responsible, costs to insure him can be prohibitively expensive simply due to his age bracket.
  • State laws. Florida’s Office of Insurance Regulation approved many rate increases in 2016, with nearly a 14 percent increase statewide. Numbers are similar across the southern U.S., with each state proposing and approving the amount of increase—an increase that will be passed on to drivers through their premiums.
  • Liability problems. When a driver is drunk or runs a red light, his insurance rates will be affected because he was clearly engaging in illegal activity. Unlike other common crash causes, it can be difficult to prove whether a driver was distracted or not. As a result, the costs of distraction impact all insured drivers, with rising costs being spread evenly among drivers whether or not they're guilty of unsafe driving.

If you were struck by a distracted driver, you shouldn't have to pay for the costs of someone else’s mistake.  Simply fill out the form on this page to set up your free consultation with a Florida injury attorney today.

 

Be the first to comment!
Post a Comment