Auto Insurance Costs on the Rise in Arizona

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A growing economy is definitely great news. But it turns out that it’s apparently not that good for auto insurance. Logic dictates that if the economy is strong, prices go low, including that of gas. Cheap gas means drivers go more miles which could give rise to car insurance claims. And you do the math, the end result Is insurances companies reacting by hiking up the premiums. This scenario is true as well in Arizona.

In 2016, car insurance rates in the country rose more than five percent in just a span of 12 months. This figure is based on the U.S Bureau of Labor Statistics. Another study shows premium for an average married middle age man rose up to nearly ten percent in just a year, even rising to more than $1,200.

Many car insurers say that the reason why they implement premium rate increases in auto insurance is to combat the recent cost headwinds. Despite the fact that number of accidents is declining, still the average payout on accidents is on the rise. Based on confirmed data, according to Insurance Research Council, the number of claims from 2005 to 2013 for bodily injury dropped down to 14.5. Despite this, the average cost per payout still hiked up to 32 percent. Within this period, the inflation rate spiked to 19 percent as well. The long-term trend shows that the high payouts are likely to continue heading in that direction.

The National Safety Council reported that last year, the auto fatalities rose to an average of eight percent. The problem with this figure is that it is the biggest annual increase in 50 years. This suggests that insurance company will try to offset their costs for years to come.

People who have clean driving record are more likely to enjoy certain advantages. However, a great record does not automatically immunize you from any rate hike. The reason for this is that aside from a driving record, there are other factors that are involved. These include non-driving factors like your credit profile.

But there are still ways to get the best auto insurance deal despite the fact the cost is on the rise in Arizona.

Auto Insurance Fraud

One of the many concerns of insurance companies are fraud claims. Today, companies has many ways how to detect insurance fraud.  Insurance fraud cost millions of loses according to State Insurance Fraud Bureau. 

2 Ways to Get The Best Auto Insurance Deal

  1. It’s always safe to shop around. Many people just go straight to an insurance company without checking on others or without weighing on the reputation of such company. So the best way, really, to get a good auto insurance deal is to go to the right insurance provider. This is true whether you are switching or applying for one.
  2. Another helpful tip is to choose a higher deductible. While it is tempting to just stick a lower deductible, the best thing to do actually is to go for $1,000 or even higher deductible. This is because a higher deductible will help you avoid on making small claims, which could actually save you plenty of money.

While auto insurance costs may continue to rise in Arizona, the wise thing to do is to find a way to navigate through it. To find out more about auto insurance, check out Gebhardt Insurance.

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How to Get the Best Motorcycle Insurance Rates

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Motorcycle insurance photo
Motorcycle insurance isn’t just a good idea, in most states it is legally required. Unless you are independently wealthy and can afford to cover expenses such as replacing your motorcycle, medical expenses for yourself and others and property damage, a comprehensive insurance policy is a must. Protect yourself and your financial health by having the insurance you need to cover the possible expenses of an accident.

What Does the Best Motorcycle Insurance Include?

Have you asked your self what are the components of a motorcycle insurance? Motorcycle insurance is similar to other vehicles in that the policies can have huge and potentially costly differences. A comprehensive policy should include all of the following:

  1. State minimum coverage and more
    Currently, 47 out of 50 states require some form of motorcycle insurance. The amounts of coverage required differ depending on the state you live in. You need to have insurance not only to protect yourself but also to comply with state law. Keep in mind that state minimums are the bare minimum and should rarely, if ever, be the only coverage you have.
  2. Bodily injury and property damage liability
    Any motorcycle insurance policy should include coverage for bodily injury and property damage liability. If you are at fault for an accident while riding your motorcycle and other people are injured as a result, bodily injury coverage will help pay for expenses related to those injuries, such as medical expenses. Property damage liability covers any property that may be damaged in the accident. This can includes items such as another person’s car or motorcycle and also public property such as road signs and utility poles.
  3. Under/uninsured motorist coverage
    Many states will require you to have under/uninsured motorist coverage. This type of insurance is needed in the event of an accident where the responsible party does not have insurance or does not have enough insurance to pay for the costs associated with the accident. This can protect you financially even if another driver is uninsured.
  4. Replacement coverage
    It’s important to note that property damage liability coverage is designed to cover other people’s property, not your own. Replacement coverage can fill in the gap and help pay for any damages to your motorcycle or other property. Unless you have enough money in the bank to pay for repairs or a brand new motorcycle out of pocket, this type of insurance coverage is a must.

What Does the Average Motorcycle Insurance Cost?

Motorcycle insurance rates will fluctuate based on a number of factors. Your age is still looked at as a prevalent factor when determining insurance rates. If you are under the age of 25 you can expect to pay higher rates than those a little older than you. Insurers consider younger drivers a higher risk and because of this will charge them more.

Your driving history is also a large factor in your premium costs. If you have one accident under your belt already you may be able to get insurance with little to no increased fees, however, if you have two or more accidents on your driving record they may cost you. Insurance companies will do their homework and will carefully scrutinize your driving history. Small citations or moving violations won’t do as much harm to your wallet as accidents with expensive claims. Different companies will have different levels of financial penalties for a streaky track record, so make sure that you shop around for the best price possible.

The type of motorcycle you purchase will also directly relate to the cost of insurance. The faster and more expensive the vehicle, the higher the insurance price tag. Similar to the difference in insuring a minivan versus a Ferrari, a highly-valued racing bike will cost more to insure than a less expensive and slower motorcycle. Sport bikes like the Ducati 1199 Panigale and Suzuki’s GSX-R1000 are good examples of motorcycles that will be on the high end of cost for insurance. These bikes are built forspeed and roadway maneuverability making them likely choices for customers that like to go fast. Any sport bike will be associated as a higher risk to an insurance company and your costs will reflect that.

Expensive to repair or replace bikes will also increase your insurance premium. If you own a custom bike with parts that are difficult to find or a bike that is commonly stolen your insurance rates will be higher. Honda’s are the most commonly stolen motorcycles. If you have an insurance policy that covers the cost of replacement in the event of theft (and you should), expect to pay a little more. The amount of coverage also impacts your monthly premiums. If you maintain the bare state minimum requirements in coverage, you will pay much less in monthly fees than if you carry comprehensive coverage. That being said you will also be much less protected financially in the event of an accident.

Protect Yourself With Motorcycle Insurance

Don’t take chances. Enjoy riding your motorcycle with the peace of mind that you have the right insurance in place, just in case. Call Gebhardt Insurance today and let us make sure you have the insurance you need for a price you can afford.