Why Do My Car Insurance Rates Keep Going Up?

Hands on car steering wheeling with front window

People with good driving records rightfully expect to benefit by getting lower car insurance rates. And they expect insurance rates to go down as their car gets older. For the most part, car owners expect to be able to connect their insurance rates with factors they can see. Unfortunately, auto insurance rates rise for many reasons that are not related to a particular driver’s record or the age of the car.

Below is a list of some factors that affect your insurance rates in ways you may not expect.

1. Rising Cost of Repairs

“Vehicles have become more advanced, both in terms of safety and technology,” said Ben Guttman, an executive broker with North Central Insurance Agency in Baltimore, in an interview with U.S. News and World Report. This means there are more expensive parts to fix even in a small accident, and the cars are designed to protect the passengers even at the cost of being totaled.”

JoAnne Murray, president of Allan Block Insurance Agency in New York City, cites the rising cost of parts as a reason for rising insurance prices. “A side-view mirror can cost $1,000. Bumpers are more than $2,000. The days of a minor fender bender where the cost to repair was under $1,000 doesn’t exist. This drives up the rates,” she says.

2. Distracted Driving

“The main cause for rising costs is distracted driving,” Guttman says. “When you aren’t watching the road, it not only increases the likelihood of a wreck but also increases the severity. What would have been a small fender bender if you had hit the brakes a second earlier, now is a total loss.”

Cell phones have become ubiquitous, and car controls have become more complex. Climate and audio features now often involve a touch screen with several menus. Texting while driving or forgetting to set controls before pulling onto the road means that drivers look away from the road for longer periods, turning an avoidable danger or a small accident into a serious collision. Enough major accidents over time add up to high rates for everyone.

3. Your Credit

Your credit rating also affects your insurance rates in many states. Some estimates suggest that your insurance rate can increase as much as 27 percent if your credit score reduces from excellent to fair. If your credit score drops from excellent to poor, your insurance rates could double in cost.

4. Uninsured Drivers

In 2015, 13 percent of the drivers in the U.S. were uninsured. That means that one of every eight cars you pass today could be driven by someone who does not carry insurance on their vehicle. Processing claims involving uninsured drivers has become very expensive, increasing the cost of insurance too. Many car owners take out Uninsured Driver Coverage, which covers some costs if you’re in an accident, the other driver is at fault, and that driver doesn’t carry liability insurance.

5. Increases in State Speed Limits

Many states are raising their speed limits, which leads not only to more accidents, but to worse accidents with more significant damage, more severe injuries, and more fatalities. Rising medical costs also raise the price of covering injuries from an accident.

6. Extreme Weather

Extreme weather is becoming more common across the U.S., according to a 2017 report from Farmers Insurance. Everything from hail storms to flash floods are increasing and persisting past the winter months into April and May. Eventually, such patterns could increasingly affect insurance rates.

7. Changing Your Insurance Policy

Adding a new driver to your policy or changing the primary driver can raise your rate, as can removing a car from your policy or separating your home insurance from your car insurance. If your insurance policies are bundled, you may be getting discounts for multiple cars or multiple policies that you are not entirely aware of. Splitting the bundle can reduce or eliminate the discount.

Steps You Can Take to Improve Your Rates

There are some reasons for auto insurance increases that won’t change until most people change the way they drive. But there are steps you can take to improve your insurance rates.

      • When you buy your next car, consider a car with simpler engineering, with more mechanical and fewer computer-controlled parts to maintain. Look at well-cared-for pre-owned cars that could give you a better rate because they are cheaper, to begin with, and have a shorter life expectancy.
      • Just as separating an insurance bundle can raise your rates, bundling your homeowners or renters insurance with your car insurance and insuring all of your families’ cars with one company can save you as much as 25 percent in insurance costs.
      • Do the math on raising your deductible. A higher deductible can mean a lower monthly rate. But keep the deductible to an amount you can afford and set that amount safely aside so that an accident or theft doesn’t leave you worse off than a higher payment.
      • Talk to your insurance agent about your insurance plan. Different insurance plans have different structures with various fees, financing rates, or service charges. Changing your payment plan may lower the overall cost. If you have more than one car, you may not need rental coverage to rent a car if one of them is damaged. If you have AAA, you might opt out of roadside coverage.
      • Continue all the auto safety checks, regular maintenance, and safe driving habits you already practice. They are not the only factors that affect your car insurance rates, but they do have an impact, and they keep you, your family, and other drivers safe.

Our team at Griffin Owens Insurance Group would be glad to talk to you about your car insurance and explore how you can save money while staying safe. Call us at 703-471-0050 or email us with any questions. We are here to help.

Home Improvement: Beyond Homeowners Insurance

If you’re about to renovate your kitchen, finish your basement, add a room to your house, or dig a pool, you have probably been careful about researching excellent, reliable contractors to do the work. Be sure to review your homeowners insurance, too, to understand how changes in your home can change your insurance needs.

According to the Occupational Safety and Health Administration (OSHA), one in five job-related accidents in the U.S. last year were in the construction industry. That’s not counting the accidents that can happen after your renovation or addition has been safely completed. Here are some steps you can take to make sure you’re covered.

• Ask your contractor for a copy of their certificate of insurance. This request is standard and should be easy for them to provide. The contractor’s certificate should indicate their General Liability Insurance, Workers Compensation Insurance, and Property Insurance. Even the best and safest contractors may have accidents, and construction sites are especially vulnerable to weather anomalies and minor mishaps.

• Request the certificate and talk to your insurance agent. Anything your contractor isn’t covered for, you could be responsible for as the property owner. And if you’re doing the work yourself, you will need your own insurance.

Make sure that the General Liability Coverage taken out by you or your contractor protects you against any damage to your neighbors’ property, as well as to your own.

Ask your agent also about Builder’s Risk Insurance to cover possible damage to uninstalled appliances, furniture, and materials.

• Talk to your insurance agent about how your project may decrease your insurance. Are you making changes that make your home safer? If you are replacing old wiring or outdated plumbing, reinforcing or rebuilding a roof, or adding a security system, sprinkler system, or fire alarm, your improvements will make your home safer, and that can result in a discount to your insurance rates. You may want to include one or more of these safety improvements in a project you’ve already envisioned.

• Ask your insurance agent if your changes will increase your insurance. Many home improvements increase the value of your home, and therefore, your homeowners insurance should also increase. You’ve just made your home more valuable, probably increasing its resale value. Certainly, you’ll want that value back if the unthinkable does happen. And your insurance company may have a rule about the percentage of the value of your home that has to be covered.

• Find out if you need additional types of insurance. Adding a swimming pool or adding a deck, especially a second-story deck, could raise your General Liability Insurance. An accident doesn’t have to be your fault or the fault of your contractor to make you liable for damages.

If you’re finishing a basement for use as living space, find out about the risk of flooding, and talk to your insurance company about Flood Insurance. Flood, earthquake, and other disaster insurance are not generally included in a standard homeowners insurance policy.

Making your home your dream house should be a positive experience. If you’re about to start a construction project and are not sure about where you stand with any of these points, call your insurance agent right away.

Or you can contact the Griffin Owens Insurance Group at 703-471-0050 or by using the simple form at Griffin Owens Contact. At Griffin Owens, we have experience in a large variety of business, personal, and financial insurance solutions. We’d be glad to talk with you about preparing for your home improvement project.

Aging in Place. Planning to live well.

According to the US Census Bureau by the year 2030, all baby boomers will be over the age of 65 and represent 20% of the US population. And, for the first time in US history, older adults will outnumber children.
These statistics are really not much of a surprise. In fact, it is not unusual to know retired adults who are caring for their retired parents. Older adults are living longer and the implications are clear, the growing number of aging adults in the United States will impact all areas: medical delivery, economic stability, and housing.
To ease the challenges of growing older many are choosing to “age in place”. A concept whose popularity has increased each year. It is a popular choice for a variety of reasons: living costs can be lower than an assisted care residence, the mortgage has been paid off, the neighborhood and the neighbors are familiar and provide comfortable surroundings, and the home is filled with memories and treasures providing emotional support and comfort.
Are you thinking about aging in place? Successful aging in place requires thoughtful planning and implementation to keep you and your loved ones safe.

Here are a few suggestions to get you started:

  1. Consider Home Modifications. Adapting your home now may help prevent falls in the future. Adding handrails to the bathing area, putting in place non-slip rugs and floor surfaces, changing the location of the washer/dryer to the main level, chair lifts for staircases, and even adding larger handles and door pulls may help prevent injuries.
  2. Consider emergencies. Add flashing lights to doorbells and fire alarms, wear pendants and necklaces for emergency contact at the push of a button, and install home security alarms to prevent intruders.
  3.  Learn alternate transportation options. While you may be driving today, consider the options for travel should you no longer find driving comfortable. While you may love the inside of your home, you need to be able to move freely outside the home as well.
  4. Find reputable home maintenance agencies to help with repairs. Those chores that you may have done earlier will not look so appealing as balance and mobility changes. And, those chores need to be done as frequently as before.
  5. Insurance Review. Contact your insurance agent for a full review of coverage including home, car, personal property, and liability. Consider reviewing life insurance and long term care insurance riders. There are products now available to help cover long term care expenses that may meet your needs.

Aging in Place is a current trend and promotes independent living. For families, there are so many considerations regarding the home modifications, financial planning, long term health planning, insurance and finding the right home care provider. According to the Homecare Association of America, “homecare benefits seniors… keeping seniors safe, healthy, engaged and active, Value of Homecare.

To promote independent living, we can help create a plan and support your family.

Call 703-471-0050 or connect with us at  Griffin Owens Insurance Group.

Drive Smart Virginia- Distracted Driving

distracted driver on cell phone

Distracted driving is dangerous and continues to kill and injure more people each year. According to the National Highway Traffic Safety Administration (NHTSA), as a result of distracted driving, 3,450 people were killed in 2016, and hundreds of thousands injured. These numbers continue to rise as technology becomes a larger part of our daily life.

Distracted driving is not a new issue; it includes anything that takes the drivers’ eyes off the road. And, seconds do matter. At 55 miles per hour, looking away from the road for 5 seconds has been compared to driving the length of a football field blindfolded. The introduction of smartphones, smart cars and texting has exponentially increased these dangers– and teenagers present the greatest risk.

The National Association of Insurance Commissioners (NAIC) calls it an epidemic and federal, state and local governments are paying attention. For example, Texas now requires new drivers over the age of 18 to take a distracted driver course, Virginia has the “DRIVE SMART” campaign aimed at improving safety, and the National Association of Insurance Commissioners (NAIC) launched a  “Keep the Road Code” pledge and campaign. New devices on cars are also helping through new features including blind spot warning systems, lane change alerts, back up warning signals and assisted braking mechanisms.

Companies are stepping up as well. Distracted driving by employees is dangerous and a concern for businesses.  Social responsibility, economic liability and public safety are encouraging internal rules and education in the corporate world.

With the knowledge that cellphone interactions while driving are up 57 percent over early studies, the insurance industry is helping to lead some of these initiatives, not only through education but targeted awareness campaigns. A recent study by car insurance search engine, The Zebra, confirmed that motorists ticketed for distracted driving could see their auto insurance premiums increase by an average of 16%, or roughly $226 a year. The study also found that premiums increased by 41% in one state when policyholders are charged with distracted driving violations. Social, criminal and financial implications will continue to grow as a result of distracted driving in our society.

We all need to work together to change these dangerous behaviors through meaningful legislation, targeted media campaigns, and education.

We know how important these issues are and we are trying to do our part. Throughout the year we work to educate Virginians about the dangers of taking their eyes and mind off the road. We discuss not only the risks of cell phone use but eating, drinking, grooming, reading and even tending to pets and children while driving.

As we all work together for positive change, there may be questions you have regarding insurance and your policy. Please feel free to give us a call at703- 471-0050, email or visit our website.

Cyber Liability vs Data Breach

cyberliability insurance

“Houston, we have a problem!”

The Problem

All businesses today are at risk from a cyber-attack. As noted in Small Business Trends, 1 in 40 small businesses and 1 in 2 larger businesses may be victims of a cyber crime each year. The risk to businesses will continue to increase as cyber-crimes, cyber-liability and data breaches evolve and become more sophisticated.

As a small business, it is not only critical to secure data, it is your responsibility. With nearly all transactions having a digital component, the safety and security of that data cannot be left to chance. The implementation of strong, safe and reliable protections are the best practices for successful long term growth and trusted business relationships.

Cyber threats are complex and unpredictable. They come in many forms including: unauthorized access, theft, destruction of data, social engineering, transmission of viruses, malicious codes, and extortion. Unauthorized access related to proprietary assets could result in a data breach ending up in the wrong hands. Extortion occurs when hackers take over your data often demanding money for the release of your information. Social engineering may include baiting or phishing to persuade you to provide information that later is used against your company. In addition, the loss of revenue associated with a cyber-attack can be massive and often unrecoverable.

Businesses should embrace the opportunity to implement protections keeping their data, and their clients safe in cyberspace. There are dedicated companies providing solutions for cyber liability and peace of mind. See some tips below on being proactive and asking the right questions.

Questions To Ask

  • Do you have malware to protect you in case of a data breach?
  • Have you consulted with an insurance company specializing in online business security?
  • What would you do if your website was locked down or inaccessible for business?
  • How would you communicate a problem to your clients?
  • Have you consulted with an insurance company specializing in cyber liability?
  • Have you consulted with a law firm that specializes in data breach issues?
  • Do you have an investigative and forensic firm to support you?
  • Do you have a PR firm for reputation management?

Assess Risk: Solution

There are tools to assess your business’ risk. Our Cyber Scorecard for Business will help identify and analyze cyber liability risk exposure. After identifying the areas that need protection, you can explore coverage that meets your business needs.

Getting Started

To start your assessment and evaluate your company’s risk level call 571-386-1000 or email us at info@griffinowens.com. Read more about our cyber liability insurance as well.

For more information on data breach, watch the video below.