With More Car Accidents, Could Insurance Rates Be Going Up?

While this story is based in Texas, it could very well be DC. Insurance companies use the same metrics nationally.

http://www.newswest9.com/story/22451118/with-more-car-accidents-could-insurance-rates-be-going-up

By Sylvia Gonzalez
NewsWest 9 

PERMIAN BASIN – It seems every other day NewsWest 9 reports on a car accident, whether it’s fatal or not, there is no doubt car accidents have increased across the board. Have you wondered whether the increase of accidents in the Basin will impact you wallet?

NewsWest 9 spoke with an insurance agent who says, insurance companies take many things into consideration before increasing their rates, that includes what kind of car you drive, how old you are and where you live.

“State Farm has not looked at the City of Odessa or Midland and said ‘hey there’s way too many accidents there we are going to raise it.’ There has to be alot of leg work that needs to be done before an insurance company can increase their rates,” State Farm Insurance Agent, Filiberto Gonzales, said.

Gonzales says he too has seen an increase in car accidents, and although it’s unlikely for an increase to happen in the next few months, it’s a possibility that could happen in the near future.

“I do believe that just because of something that happens within a short period of time, I think it’s going to have to be long term before they can actually say, ‘hey we are going to increase our rates because of that (accident),'” Gonzales said.
Gonzales says many factors are considered before rates are increased. It often includes what vehicle you drive and how many tickets you have. He says companies also consider how long you have lived in a specific area.
“The individual drivers driving habits and tickets in the household, accidents in the household, but in long term, maybe that is something companies do look at,” Gonzales said.
Gonzales mentioned that one out of every four cars in the City of Midland and Odessa are not insured. He says with the recent increase in accidents, more people have been walking through their door. They are not only opting to purchase insurance, but at times, are even choosing to upgrade their current insurance.
“I highly recommend that every person sits down with their insurance agent and review what they have. I am sure their insurance agent is very capable of providing information of what they have and what they suggest for them to have because of some of the increases, in some of the accidents, have been happening here,” Gonzales said.

Gonzales did add whether insurance rates go up or not, drivers should always do what they can to make sure they are driving safely.

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