Have you noticed how high tech vehicles are becoming? There’s sensors in the seats, bumpers, and tires. There’s back up cameras and touch screen radio units. Some have digital dashboards with all kinds of bells and whistles. Even moderately aged cars have some of this technology. So as you can imagine, this technology is expensive to replace. At Hennessey, Thames and Leavitt Insurance Agency in Vicksburg, MS we are aware of the costs associated with the technological advancements in today’s cars.
I’ve attended many seminars on the cost of auto insurance. The experts say that a majority of cars on the road are between 10-15 years old. This means many consumers are trading in their older car for a newer one, which is how it is supposed to work. However, these newer vehicles are filled with expensive technology. Car insurance companies are having to pay out much higher claims to repair vehicles after an accident. The higher costs to repair vehicles is directly driving up the cost of auto insurance.
When a car insurance company is setting their rates, they break things down into zip codes. They check claims history and accident reports for each zip code. Then they make a rate based on the claims and accident experience. Every car insurance company does this but they may use their own derivative. This means that even if you are a great driver with no claims or accidents, you could still experience high rates based on where you live. If you have a lot of crazy drivers in your area, it could be affecting your car insurance rates!
Car insurance companies are becoming very creative in combating the cost issue and the rating issue. Many car insurance companies now offer a device that can be plugged into your vehicle. This device monitors your driving over a period of time. If you choose to participate, you have the opportunity to control your rate based on your driving alone and gets you out of the zip code grouping. The device is meant to help charge fair rates per individual driver. It’s unfair for the person who follows the rules of the road and never has an accident to pay high car insurance premiums because someone else is reckless. Inversly, it’s only fair for the crazy drivers to pay the high premiums since they will be the ones causing the accidents. The device also has many other useful features like geofencing and start up alerts—these can be useful for monitoring where your young driver is actually going.
We would love to get you set up with a telematics device! Most people who try it experience a discount on their car insurance. Hennessey, Thames and Leavitt Insurance Agency wants to make sure you get the most value out of your car insurance. Call us today to discuss building your own customized car insurance policy. We can be reached by phone at 601-636-5560, on the web at www.leavit.com/Vicksburg or come by the office at 1001 Belmont Street Vicksburg, MS 39180.
