Car insurance rates on the rise

The price of everything is going up these days. Now you can add one more thing to the list, car insurance.

Crumpled metal and shattered glass often the result of accidents we see on the roadways every day. We are all required to have insurance in Michigan to cover the cost, but the experts says rates are going up.

Bob Pierce, MI assoc. of Insurance Agents: “Everything is interrelated in today’s economy, when prices go up in one arena they impact another”

Pierce says it’s hard to say exactly how much prices are going up because there are so many different factors in insurance rates but he says the reason for the increase is simple.

Bob Pierce:”From all the statistics people driving less, less auto accidents, however the costs involved with those accidents, all of those costs are going up.”

Pierce points to two specific areas, healthcare costs are rising and he says the high price of everything else, like oil and steel, drives rates up.

Bob Pierce: “If the cost of manufacturing repair parts has gone up, naturally that will be reflected eventually in the cost of auto insurance covering those repairs.”

That’s why we’ll all still pay the price even if you manage to avoid accidents.