What’s Revving Up Your Rates? Uncovering the Mystery Behind Rising Car Insurance Costs
When your car is more than just a way to get around, a surprise hike in your insurance premium can really shake up your budget. Learn what you can do to keep coverage costs under control.
With call sheet in hand, equipment packed, and a dawn drive to the set, your car is more than just a mode of transportation, and we know it supports your livelihood. That’s why car insurance, can play such a starring role. But what happens when an unexpected twist comes in the form of a premium hike? It can be distressing and confusing. Insurance increases not only impact your wallet, but also your ability to capitalize on future work opportunities. So how do you handle this potential, and often unexpected, insurance cost increase?
Car insurance premium basics
In simple terms, your auto premium is the amount you pay your insurance company for coverage of your vehicle. And while auto insurance rates and payment plans can vary by company, your premium is generally based on details like the type of coverage you choose and what sort of vehicle you drive. Once your premium is paid, your insurance company will then pay for the coverages specified in your policy.
Okay, but what’s behind the recent surge in car insurance rates?
In one word, inflation. Inflation has escalated costs across all industries, including automotive. Labor shortages and supply chain disruptions have led to longer repair times and costlier claims. The price to replace vehicles declared a total loss after an accident has increased significantly. As a result, insurance companies have adjusted premium rates to compensate for these increasing repair and replacement costs.
Insurance rates are going to change over time, and while you can’t control all the factors that influence your auto premium, there are things you can do to that can help manage costs.
Bundling your car insurance with your homeowner or rental insurance.
Also known as a multipolicy discount, bundling your auto insurance with your home or rental policy may lower the cost of your overall coverage. Managing multiple policies is also easier when they come from one company.
A clean driving record.
To insurance companies, drivers with no traffic violations or collisions are seen as lower risk since they are less likely to file an insurance claim. Keeping a clean driving record leads to lower premium costs.
Vehicle age.
Due to their higher value and advanced technology, newer cars cost more to repair or replace after an accident and are more susceptible to theft. If you’re in the market to purchase a new car, you may want to discuss with your insurer its potential impact on your premium. There might be alternative vehicles that will save you money on insurance.
Location, location, location.
Just like film scouting, location matters. Car insurance rates can vary by city, state, and even neighborhood. Insurance providers take into consideration various factors like community safety, climate conditions, and auto accident statistics in relation to your area to determine your premium.
How much you drive.
We know Los Angeles is notorious for its traffic, but for now the most efficient way to get you and your gear to your next gig is by driving. It’s no surprise that the more miles you clock on the road, the higher the risk of an accident occurring. Insurance companies do take this into consideration. If your driving frequency fluctuates depending on the job you’re working, talk to your insurer to determine how these changes might impact your rate.
If you still find your car insurance cost rising, you have options. Contact First Entertainment where we understand the unique financial circumstances of our creative community. Let us help you compare your current auto policy with multiple insurance carriers and find the plan that’s right for you.
Cynthia Padilla, Insurance Agent, MBIS (Hollywood Branch)
323.845.4489
cpadi@firstent.org
Maria Okafor, Insurance Agent, MBIS (Hollywood Branch)
323.845.4494
mokaf@firstent.org
Monique Garcia, Insurance Agent, MBIS (Culver City Branch)
323.845.4495
mgarc@firstent.org
Media Benefits Insurance Services
6735 Forest Lawn Dr., Hollywood, CA 90068
insurance@firstent.org
www.firstent.org
