We hear this question often from our clients.  Car insurance rates for all companies have increased over the last few years and I’d like to address some of the reasons:

• While technology in cars can make them safer on the road, it also adds to the cost to repair the car. My new Camry has five cameras to help me back up and see what is around my car. It also has lane departure warnings and helps navigate me back into the lane. I also have headlights that move as I turn my car.  All these features are great but to repair a bumper or windshield is now a lot more expensive.
• There are more cars on the road than ever before and with stable gas prices people are driving more. More driving leads to more accidents.
• Distracted driving. Do I need to say more?  I was on the road the other day when the driver in the car next to me was holding his cell phone to his ear talking with one hand as he drank his coffee using the other hand.  Not sure how he was driving.  It used to be when one of our clients was rear ended at a traffic light they were hit at about 10 MPH. Now due to distracted driving, drivers don’t even realize the light is red and smash into the car in front of them going 40 or 50 MPH. This leads to much more serious claims and higher payments. Over the last three years our agency has had three claims over $500,000 in liability payments.  Fortunately for two of our clients they purchased an umbrella policy that we recommended.

All these factors contribute to the rise in car insurance rates. Our goal at Spencer Insurance Agency is to make sure you are paying a competitive price for your insurance coverage. We review your renewal policy to make sure it is not out of line.  As independent agents we have several companies to choose from for your auto insurance rates.  If you ever feel your rates are too high let us know. We will check it out.  If another company’s rate seems a lot lower please call to discuss the quote with us to make sure you are getting the same coverage.  The “True Cost of Insurance” is not just the premium but also the additional out of pocket costs you incur because you had the wrong coverage.

Contact Spencer Insurance Agency for a second opinion on your car insurance.