Reasons why the cost of car insurance is on the rise
Auto insurance can vary from person to person due to your location, the type of car you drive, age and driving record, there are a few things that factor into everyone’s price increase.
Economic Inflation: Over the past few years we’ve seen a rise in cost for just about everything. Rises in auto parts, medical care, and for labor is contributing to increase insurance prices. According to consumer price index, car repair costs are up almost 20% in the past year. On top of that, car prices rose dramatically in 2022 because of global supply chain issues.
MCCA Fee Increase: Drivers with unlimited personal injury protection (PIP) coverage will have to pay $122 per vehicle to the Michigan Catastrophic Claims Association, a $36 increase from last year. For all other plans, drivers will have to pay a $48 per vehicle fee, up from $0.
Ways you can reduce your insurance premium:
FB Drives Michigan! is a new program that rewards drivers with money-saving discounts based on their safe driving. The program also provides personalized feedback helping drivers continue to make safer choices. With FB Drives Michigan!, you could save up to 15% immediately for signing up*. At your next renewal, your good driving could pay off even more – up to 35%!
If you have questions about your auto insurance premium, connect with us! We are happy to review with you and discuss your options.
*An immediate auto premium discount of 15% is applied when enrolling in an annual term policy. A 12% auto premium discount is applied for six-month terms.