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Why Are Auto Insurance Rates Still Rising Despite Safety Standards Improving?

Getting good value auto insurance rates can seem challenging because there are so many deals available. We are here to help you motor away with the best deals, despite the fact that the costs of auto insurance rates seems to be constantly going up.

Some of the facts about improving safety standards...

It is more important then ever to get comprehensive full coverage auto insurance, because although the rates of auto accidents actually declined in some areas. For example, in the District of Columbia between 1985 and 1995, according to the National Center for Policy Analysis, auto accident rates actually declined by 22 percent; a fact that can probably be attributed to a combination of Government initiatives and improved safety measures in motor vehicles.

In fact, comparing between 1995 and 2011 for seat belt use you can see that nationally it has risen from about 58% to 85% which also helps explain why passenger survival rates are on the rise.

Additionally, new cars are now considerably safer statistically then at any time in the past, and yet rates for auto insurance still seem to be inexorably rising. So it is a very real issue for most motorists who wonder why it is then that the costs of their cover keep going up at a time when they are less likely to have an accident, and even if they do it is likely to be less severe. That seems to be a recipe for lower insurance premiums and cost savings, and yet premiums are going up across the country.

Why are auto insurance rates going up then?

The facts is that despite this increased safety, the number of auto related personal injury claims actually rose during the same period by 137 percent!

In other words well over double the amount of cases going to court and incurring legal fees, costs, fines, penalties and all the other expenses that come along with legal cases.

And it is the auto insurance companies who are bearing the cost of much of this litigation, and then passing it along to consumers in the form of higher premiums.

You need auto insurance to cover you for legal expenses as well as simple medical costs. So, whilst improved safety initiatives and less car accidents are clearly great news the fact is that the average cost of each accident is going up, and the auto insurance rates along with it, because of the legal ramifications that are now inexorably intertwined with auto accidents.

Additionally, whilst the safety profile of cars has increased, the costs of medical care (which the insurance companies pay for if you have auto insurance) has also skyrocketed.

The Example of Hawaii...

A good example of this comes from Hawaii, where auto tort claimants must incur $6000 in health costs before they can sue for pain and suffering, so that chiropractors in connection with auto tort claims engage in an average of an amazing 58 visits per claim!

And then of course after having paid for that there is a correspondingly high amount of people who then pursue legal avenues to establish the 'pain and suffering' that the accident caused them.

In other words the potential bill for the medical treatment alone runs into the thousands, and then the bill for the legal fees also runs into potentially far greater sums if liability is established.

Someone has to pay these costs, and it tends to be the insurance companies which accounts for much of the big rises in auto insurance rates that most members of the public have had to endure.

Nevertheless, it is important to question your insurance provider closely about the nature of why their auto insurance rates are what they are, and what level of motor insurance cover they provide in return as there are still big differences in the costs of different policies, and you can still save money on auto insurance if you shop around for the best prices.

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