Enter your ZIP code:

What's Behind Your Auto Insurance Quotes?

Automobile-related expenses rise year after year, causing auto insurance quotes to soar in response.

Rising medical and legal costs, sharply increasing vehicle repair prices, theft, fraud and drunk driving all contribute enormously to what you pay to insure your car. These are the principal drivers behind high auto insurance rates today, according to the Insurance Information Institute (III).

Let's examine these issues and their related costs further.

Medical and Legal

Each year, more than two million automobile accidents result in injury. Typical costs for treating an auto accident victim range from $6,000 to $9,000—but can easily run into the tens of thousands of dollars, says the I.I.I. In addition, the U.S. Department of Transportation estimates that accident-related deaths cost our society more than $150 billion every year.

Related legal expenses drive rates even higher, with auto liability payments rising 44 percent in 2000. In addition, jury awards for vehicular liability sometimes approach outrageous sums today.

Vehicle Repair

Automobile technology, construction and design advancements have accompanied auto-damage liability increases in recent years.

Depending on the type of car you purchase, high repair costs may be inherent—which also means higher auto insurance quotes. The cost of manufacturing and repairing vehicles with innovations such as lighter, smaller construction and thinner glass has negatively impacted auto insurance quotes and prices.

In addition, many consumers choose to add rental car coverage to their auto insurance policies, adding further to the price insurers must pay to get them back on the road.

Theft

Vehicle theft sometimes seems rampant. The III estimates a motor vehicle is stolen in the United States every 24 seconds.

Auto theft is covered under the comprehensive section of your auto insurance policy. Risk of loss—or the likelihood that your car will be stolen or damaged—determines the price you pay for this type of insurance.

The dollar amount for claims filed due to theft shows, in part, the higher value of new cars on the road. These newer vehicles become targets for thieves; and, because they cost more to repair when subsequently involved in an accident or stolen, are also associated with higher auto insurance quotes.

The National Insurance Crime Bureau (NICB) recommends a multi-layered approach to prevent auto theft:

  • Common sense—use your car's standard safety features regularly. Includes locking your car and taking the keys.
  • Warning device or alarm—activate and use to deter thieves.
  • Immobilizing device—use a fuel cutoff or smart key to prevent a burglar from being able to drive your vehicle.
  • Tracking device—allows law enforcement to track and recover your vehicle, if stolen.

Fraud

Fraud is the second most costly white-collar crime in America, costing consumers an estimated $30 billion annually, according to the NICB. The most common fraud schemes involve insurance and include bodily injury fraud, auto repair fraud, homeowners claim fraud and worker's compensation fraud. Higher auto insurance quotes are one result.

Auto fraud involves criminals who stage bogus auto accidents, then file insurance claims for payment. Not only is this against the law—it can cause injuries and even have deadly consequences.

Fraud is a major problem in some states, including New York, Florida and Massachusetts.

The NICB provides these tips for preventing auto insurance fraud:

—Avoid tailgating, allowing sufficient distance between your car and the one in front of you while driving.
—Call the police to the scene and file a report immediately when involved in an accident.
—Carry a disposable camera in your vehicle and photograph damages to your car and occupants of the other vehicle if a mishap occurs.

Note: InsureMe's online auto insurance quoting service verifies its referring agents' licenses in order to protect you from fraud.

Drunk Driving

Impaired driving will affect one in three Americans, according to a study by the National Center for Injury Prevention and Control (NCIPC).

Alcohol-related crashes kill someone every 31 minutes and non-fatally injure someone every two minutes, making them one of the largest contributors to high auto insurance prices. In addition, these accidents cost the insurance industry about $51 billion a year, translating into high auto insurance quotes for the consumer.

Although the risk of being involved in a car crash of any type is greater for young people than for the elderly, death or injury from impaired driving does not discriminate between victims. So avoid drinking and driving to keep everyone safe on the road and lower your auto insurance quotes.

List of Articles
No. Subject Author Views
85 Rental Car Insurance: Do You Really Need It? youcomparequotes 17653
84 Auto Insurance: The Secret Weapon for Saving at the Pump youcomparequotes 17981
83 Getting the Cheapest Car Insurance in Your State youcomparequotes 16928
82 Play It Safe for Cheap Truck Insurance Rates youcomparequotes 17420
81 How to Get Discount Auto Insurance youcomparequotes 17733
80 Insurance for Van Lovers youcomparequotes 17448
79 Car Insurance That Fits Your Needs youcomparequotes 17131
78 Online Car Insurance Quotes in 5 Easy Steps youcomparequotes 17317
77 Getting Insured with an Online Auto Insurance Quote youcomparequotes 18337
76 Home and Auto Insurance: Sure-Fire Protection in Unsure Times youcomparequotes 17134
75 How to Keep Teen Car Insurance Quotes at Bay youcomparequotes 19374
74 Choosing Cheap Online Car Insurance That Fits Your Life youcomparequotes 17718
73 Auto Insurance from InsureMe youcomparequotes 17635
72 Car Insurance Comparisons Save You Time & Hassle youcomparequotes 17996
71 Car Insurance Companies & InsureMe Save You Money youcomparequotes 18387
70 Buying and Insuring a New Car youcomparequotes 16759
69 Compare Auto Insurance Rates youcomparequotes 17090
68 Safety Measures Lower Auto Insurance Quotes youcomparequotes 16595
67 Getting Car Insurance Quotes, from Beginning to End youcomparequotes 16692
66 The Car Insurance Quote & Ratings Factors youcomparequotes 17165
» What's Behind Your Auto Insurance Quotes? youcomparequotes 17278
64 How Cheap Car Insurance Can Save You Money youcomparequotes 16616
63 How to Reduce Car Insurance Prices youcomparequotes 17154
62 Getting Insured with Free Car Insurance Quotes youcomparequotes 17349
61 Auto Owners Insurance & Costly Driving Mistakes youcomparequotes 16664
60 Auto Insurance Cost & Your Ride youcomparequotes 17159
59 How No Fault Auto Insurance Works--or Doesn't youcomparequotes 16935
58 How to Get the Cheapest Car Insurance youcomparequotes 16843
57 Selecting a Car Insurance Company youcomparequotes 17545
56 Finding New Car Insurance Following Cancellation or Nonrenewal youcomparequotes 17152
55 Get the Best Car Insurance Rates Around youcomparequotes 17393
54 Factors That Affect Your Car Insurance Quotes youcomparequotes 16431
53 Child Safety Belts Keep Kids Safe youcomparequotes 17095
52 Speeding and Car Insurance Rates youcomparequotes 16797
51 Not At Fault Car Insurance & Accidents youcomparequotes 16935
50 State Auto Insurance Becoming Available youcomparequotes 17257
49 Auto Insurance Gap Narrowed by Insurance youcomparequotes 17671
48 Car Insurance & Roommates or Family Members youcomparequotes 17249
47 PIP and No-Fault Auto Insurance Reform youcomparequotes 16945
46 PIP and No-Fault Auto Insurance Reform youcomparequotes 16849
45 SUVs: Minor Collision, Major Damage youcomparequotes 17402
44 Severe Weather Driving Tips youcomparequotes 17177
43 Avoiding Aggressive Drivers youcomparequotes 18036
42 Safety Tips & Car Insurance for Teens youcomparequotes 17095
41 Insurance for Cars: It's Your Choice youcomparequotes 17053
40 Car Insurance Quotes Save You Money youcomparequotes 17114
39 Finding & Comparing Auto Insurance Specialists youcomparequotes 17980
38 Safety Features Save Lives & Money youcomparequotes 16873
37 Curbing Auto Insurance Prices youcomparequotes 16413
36 Teen Auto Insurance youcomparequotes 16697
35 Car Insurance: Your Questions Answered youcomparequotes 16748
34 How to Buy Car Insurance youcomparequotes 17382
33 Vehicle Insurance: Covering Any Kind of Car youcomparequotes 16660
32 Truck Insurance for Your Pride & Joy youcomparequotes 16454
31 How Insuring a Used Car Can Save You Money youcomparequotes 17322
30 All-in-One Policies Insure Car & Home Together youcomparequotes 17211
29 Credit Scores & Car Insurance youcomparequotes 17824
28 Classic Car Insurance Protects Your Relic Ride youcomparequotes 16319
27 Reducing SUV Insurance Rates youcomparequotes 16836
26 Good Driver Car Insurance Rewards Safe Driving youcomparequotes 17353
25 How to File an Auto Insurance Claim youcomparequotes 16989
24 Avoiding Deer Collisions While Driving youcomparequotes 17459
23 Cheap Auto Insurance through Safe Driving youcomparequotes 16809
22 Auto Insurance Basics That Save youcomparequotes 17216
21 It's Official - Men Are Terrible Drivers youcomparequotes 18709
20 Car Insurance Quote Saves Money and Stretches Income youcomparequotes 17467
19 Auto Insurance Quote Heavily Dependent on Driver Behavior youcomparequotes 16992
18 Car Insurance Quotes Separate Fact from Fiction youcomparequotes 17252
17 How What You Drive Affects Your Auto Insurance Quotes youcomparequotes 17022
16 Cheaper Car Insurance in 8 Easy Steps youcomparequotes 17376
15 Save Hundreds on Your Car Insurance Without Switching to Geico youcomparequotes 16865
14 Your Options in Motorcycle Insurance youcomparequotes 16840
13 The Advantages of RV Insurance youcomparequotes 17215
12 Enjoying the Classics: How to Insure Your Old Relic youcomparequotes 34716
11 Insuring Your Teen Driver youcomparequotes 16973
10 The SR22 & Car Insurance youcomparequotes 16469
9 Auto Insurance & Generic Parts youcomparequotes 17178
8 A Trip Gone Wrong: Summer Breakdown on the Road youcomparequotes 18306
7 Drowsy Drivers, Wake Up! youcomparequotes 16477
6 Cheap Car Insurance Protection You Deserve youcomparequotes 17842
5 Top 8 Safety Picks for Car Insurance Discounts youcomparequotes 17281
4 Drivers: 7 Important Facts about Texting That Could Save Your Life youcomparequotes 21366
3 Buckles: Use Them for Safety, Not for Show youcomparequotes 16782
2 Auto Insurance Quotes youcomparequotes 17242
1 Why You Should Give Thanks -- And Stay Home This Year youcomparequotes 17463
XE Login