Arizona Car Thefts Decline – But Car Insurance Rates Go Up
Drivers in Arizona will be glad to know that the number of yearly car thefts in their state has declined. Good news, of course. As a result, many people will then be wondering if this will result in a corresponding drop in car insurance rates for the Grand Canyon State. After all, the less thefts, the less car insurance claims, and that should benefit everyone. Unfortunately, this is not the case. A drop in the number of car thefts does not result in a drop in car insurance rates for a variety of reasons. In fact, Arizona car insurance rates are on the rise.
Stock Market Losses Hurt Insurers
While the drop in car thefts means that car insurance providers are experiencing less losses due to claims and pay outs, this one single factor alone is not enough to outweigh rises in other important bottom-line factors that are sending car insurance rates higher. Just like millions of individual Americans, insurance companies are seeing their outside investments take a real beating in the stock market. Just as so many people are worried about the decline in the value of their 401ks and IRAs, car insurance providers are nervous about the impact that investment losses will have on their financial health. In good economic times, the dividends reaped by car insurance providers from their outside investments could be put towards keeping member premiums low. That dividend cushion is now gone, however, car insurance rates have to rise in order to ensure the provider’s fiscal health.
One way that Arizona drivers can find the right car insurance rate for their needs and budget is by relentless auto insurance comparison shopping. It’s important to remember that car insurance providers need and want your business, and if you think you’re being overcharged for your insurance, or that the company isn’t doing enough for you, let them know you’re unhappy and are considering leaving. You may see a reduction in your premium or a change in attitude that you need.