Falling gas prices bring more drivers to the roads
Auto insurance premiums are on the rise in the United States, and this may be due to falling gas prices. Global oil prices have been falling, which has resulted in lower gas prices for drivers in the U.S. As such, many consumers have been traveling more frequently. According to the Maine Turnpike Authority, some 16 million cars passed through tolls this year, which is the highest number of vehicles passing through tolls that the organization has ever recorded.
More drivers on the road have lead to a higher number of accidents
As more consumers take to the roads, however, the number of accidents is also on the rise. The rising number of accidents, as well as other issues, have placed significant pressure on auto insurance providers. Both Allstate and Geico have reported significant losses this year, with Allstate reporting a net underwriting loss of $13 million in the auto insurance sector. As a result, insurers have begun to raise premiums, making adjustments to their pricing of auto insurance policies.
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Consumers may be able to save money on coverage by shopping around
With consumers likely to face higher premiums in 2016, those looking to renew their coverage or new car owners looking for coverage are being encouraged to shop around. Often, consumers accept policies with default deductibles and coverage amounts, but they may be able to find coverage that better suits their needs without spending any significant amount of money. Consumers may also be able to save money by taking defensive driving courses, as this will show insurers that they are safe drivers deserving of lower premiums.
Premiums may continue to rise if gas prices continue to fall
Rising auto insurance premiums are not likely to discourage consumers from driving more. If oil prices continue to fall, consumers are expected to continue traveling more frequently. The number of accidents may increase, however, which may cause insurers to continue raising premiums. Some insurance providers offer incentives to promote safe driving, allowing consumers to save some money on their coverage for being more careful while behind the wheel.