What? Haven’t insurance companies always told us that driving less would lower our premiums? According to the Insurance Information Institute (III), companies raised their rates an average of 10% between 2008 and 2010, and are planning to raise them another 4% in 2011.
So, why the rate hikes? Insurance representatives point to the rising costs of medical care related to claims, and the high number of uninsured drivers. Each is increasing the amount of money that insurance groups are paying out, so they must charge more to remain financially viable. It has nothing to do with making a larger profit (tongue in cheek).
Of course, these same companies point to their new pay-as-you-drive programs as a way to lower your premiums. The programs do offer substantial discounts to people who rarely drive or do not drive at high traffic times of the day.
The medical bills are not going to go down and the number of uninsured drivers will probably continue to rise as unemployment stays high. Your best option at this time may be a pay-as-you-drive program of just grumbling to yourself every time you pay the bill.