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Driving Decline, Insurance Increase?

America has been at the mercy of fossil fuel for what seems like forever to many of us. When we get squeezed by OPEC or greedy oil companies we often bear witness to a decline in overall cars on the road as less and less people are able to justify the expenditure.

Train station

Taking the train is becoming more popular in some cities. Image Credit: Phil Richards

One would assume that this would result in lower insurance costs to those on the road as a substantial amount of risk has been eliminated. Yet on the other hand we are seeing insurance rates going up as the risks go down. The entire situation stinks and many consumers want to get to the bottom of this before signing on with any auto insurance company. I cannot promise to give you the answers but I will show you what I have found thus far and it’s not great.

Industry Manipulation

Even as the government tracks fewer drivers on the road and less crashes year after year the auto industry is asking for increases from 9%-32%. Ultimately they claim that regardless of what the Government says they are experiencing heavier levels of filed claims and increased pricing on material goods needed to fix consumers problems.

This has been ubiquitous throughout the industry and in states with weak handed regulators these increases have gone through without a hitch. Unsurprisingly consumers have been less than satisfied with the price increases and it shows in JD Power studies on the US Auto Insurance Industry for 2013.

Needless to say consumers are struggling with the increases as the economy has only slightly recovered. The difficulty they feel is even worse when coupled with the cost of gasoline in today’s market. It’s something that consumers have come to view as standards in today’s market.

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Some Americans are left with no hope of increasing insurance rates. Image Credit: marsmettn tallahassee

Since 2000 the scores for these companies have been steadily negative each year. Still even with the fact that this year the score went down when compared to 2012, 2012 is still the second highest scoring year for auto insurance agencies. I suppose they can be happy about being second?


Auto insurance is a necessary evil and we consumers are stuck paying these outrageous prices until our government regulates the unruly market. As it stands today auto insurance companies have free range in a number of areas that they shouldn’t.

These consistently low scores and price increases seem to me the proof that something is wrong with the system. Heck, they do not even lower rates when the number of accidents and drivers on the road is lowered substantially with research to prove it. These companies are stubborn and they very much so appreciate the fact that us consumers are required by law to purchase auto insurance.

Dry Tree

Increasing insurance rates is enough to suck you dry of your hard earned money. Image Credit: gnuckx

While I can’t argue with the benefits of the insurance I will argue that the market needs some regulation. The fact that these companies can simply walk all over consumers without consequence is sickening. Worse yet is when they are punished but the punishment amounts to nothing more than a simple slap in the wrist.

Eduardo Dieguez

Eduardo Dieguez

Eduardo Dieguez is a creative writer for CFL Insurance Agency. An avid computer enthusiast, Eduardo spends countless hours tinkering with electronics both new and old. When not working with electronics, he enjoys watching sports such as basketball and tennis.

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