Why is car insurance getting more expensive?

BOSTON - Feeling like your car insurance premium is more expensive than it used to be?

That's not just a feeling.

Experts say prices are on the rise. WBZ's Courtney Cole spoke to Mark Scribner, managing director and wealth adviser with Carson Wealth, about why this is happening and what you can to save yourself some money.

Let's start here: 

Scribner said the higher premiums are being impacted by inflation, supply chain issues, car part shortages, natural disasters and the number of deadly car accidents that are still happening at a pretty high rate.

According to data from the National Highway Traffic and Safety Administration, deadly motor vehicle crashes were up in 2020 and 2021 and have only slightly decreased, (a 0.3% decrease.)

"In the pandemic, people weren't driving, and the insurance companies banked tremendous amounts of money because there were no claims and people weren't on the road—weren't allowed to be. But interesting, a lot of the profitability is on how well the insurance companies do on their investment portfolios. So, it's not just claims which is definitely exacerbated the increase in prices across the country," Scribner explained. 

Then, there are still those individual factors that are different for each person—like your driving record or where you live—that could play a factor, too.

"See if there's things that can be bundled together to potentially get some savings. You know, look for AARP if you're a certain age. And then some, you know, community-based programs," he said. "There are ways to save money, but you have to be diligent about looking at the coverage and comparing it, shopping it around."

Scribner continued by mentioning that there are also programs if you have teen drivers. 

"There are some companies out there that will put a little device in your car for safe driving," he said.

In Massachusetts, Scribner said we have what's called an insurance regulator who acts as the watchdog. But their challenge is keeping prices reasonable for customers, while also keeping insurance companies financially sound.

So, what can you do? Scribner suggests comparing prices every year.

"Take all of your coverages, compare them. Maybe bundle homeowners or apartment insurance. But it's important to go out and shop these programs. I've had clients that we've gone through this exercise, and just really easily been able to save about a thousand dollars a year," Scribner said.