Auto Insurance Costs are Rising, but with Good Reason

Auto Insurance Costs are Rising, but with Good Reason

If you are the proud owner of a car, driving up and down the street feeling proud of your “baby,” there’s probably just one thing that has been giving you headaches: the hefty rise in your auto insurance premiums. If that’s the case, we have just one piece of advice for you: get over it. These increases were long overdue. Regardless if you live in Michigan, Las Vegas, Nevada – or wherever cars are a common occurrence, these prices won’t go down – so you might as well just get used to the idea.

Where the Changes Started

First of all, one of the reasons why these premiums are going up is because of the Legislature. Still, this doesn’t mean you should start stoning the lawmakers. They’re only doing the job that we are paying them to do. If this means an increase in the minimum amount of car insurance coverage, then so be it.

In the beginning, the minimum amount provided stood at $15,000 for covering one individual injured in an accident – and $30,000 for covering all parties concerned. Plus, if you wanted to cover all property damaged, you needed to throw $10,000 more in the mix.

However, starting 2017, those fees saw a significant increase – with the ratio being now at a $25,000-$50,000-$20,000. Those increases were only put in motion starting July 1st, 2018.

Now, no one likes paying higher premiums – but the fact that the legislation has not been changed in the slightest since 1958 is still standing. Things had to be re-examined, since nothing changed over the past 60 years – particularly how everything else seems to be changing. Even the price of bread has changed since 1958 – and our average income as well. Why would car insurance be ruled out from it?

The Reasoning of the Increase

Here’s some food for thought. For example, in Nevada, population has grown from 269,000 people to 3.06 million people. That’s a whole lot of people. And since there are more people, there are more cars as well.

More cars mean more drivers. Add to that that no one leaves their car home anymore, not even when going to the grocery store, you have a higher bundle of risks and payments caused by them: accidents, legal actions, medical and attorney fees, auto replacements and so on. It was clear that insurance companies could not hold on to that minimum without sending everything down the drain.

To make things easier for the drivers in Michigan – and not make them even angrier than they already are – insurance companies are giving a fair amount of insurances with minimal costs aside from the mandatory amount. Despite the increase, you can still find some cheap auto insurance in Michigan that won’t drill a hole in your bank account.

We don’t like it; but it was certainly a necessary evil. In a time when everything is constantly on the rise, we can’t expect to see no changes. The decision to drive a car in traffic is one you make for yourself – but considering that more and more people make this decision, insurance companies need some, well, insurance.

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