GEICO Raises Insurance Rates, Cites Multiple Factors

Insurance giant GEICO, famous for clever advertising that suggests “15 minutes could save you 15%” is raising its insurance rates, per a press announcement issued on Saturday, January 12th. 

GEICO is apparently working overtime, and weekends, to stress what it calls “not-so-obvious factors” that have contributed to the rate hikes.

The company notes that “driving record and vehicle make are things that have always affected how much Americans pay for automobile insurance.” It then went on to cite a number of other factors. 

Here are a few, directly mentioned by GEICO. 

High-tech Cars 
New vehicles come with a variety of high-tech features. While many of them are designed to make driving safer, the cost of repairing newer vehicles, should a collision occur, has nearly tripled in recent years. The rise in the cost of auto parts has also increased the number of auto thefts, according to the National Insurance Crime Bureau. 

Deadlier Collisions 
Despite improvements in safety features, automobile crashes are on the rise. According to the latest figures from the Institute for Highway Safety, 37,461 Americans died in crashes in 2016. The last time auto fatalities were higher was in 2007. A number of factors have been cited for the uptick, including distracted driving and drug- and alcohol-impaired driving. 

Costly Care 
More accidents mean more medical claims, and the cost of medical treatments is on the rise. Claimed economic losses–which include medical, lost wages and other out-of-pocket expenditures–rose 10 percent from 2012 to 2017, more than three-times the medical inflation rate, according to the Insurance Research Council. 

Weather Patterns 
 Severe weather is occurring much more frequently. Last year, for example, the Insurance Information Institute recorded 187 natural disasters around the world, resulting in $119 billion insured losses in North America alone. 

The company concluded its announcement by noting: “GEICO has a number of discount programs aimed at providing customers with the best price possible. From special programs for the military to reduced rates for students, GEICO has a range of discounts suited for nearly every driver.”
The question is this: “Will 15 minutes still save you 15 percent?” 

Category: General Update, News