BUFFALO, N.Y. (WKBW) — If it seems like you're paying more for car insurance, you're not alone. That's because it has gotten more expensive. According to a recent report from Bankrate, the average annual premium is up 26% since last year.
Alex Tetzlaff, an insurance agent with AAA, said the state has been informing many well-known insurance companies to raise rates because while everyone would like to have low-cost insurance that's the pool of money that pays for claim payouts.
"With the higher payouts, the state says the pool of money needs to be greater to make sure that there's money set aside to pay off these claims. Thus, the rising cost of premiums," Teztlaff said.
He said another factor contributing to the higher rates — car thefts and the technological advancements made to cars.
"A rear-end accident whereas 10 years ago would have cost $500 for repair. Now, it's costing $3000. because to disassemble that sensor on the back of the car, to get all those little pieces and everything you're going to have to pay a lot more for labor hours," he added.
7 News' Kristen Mirand dug a little deeper to see what the insurance rates are in Buffalo. Mirand came across Beth Swanson with The Zebra — an insurance comparison site.
"Buffalo actually has higher [insurance rates] than average in the state," Swanson said.
Swanson found that the average cost of a six-month policy in Buffalois $1111. She said that Buffalo residents pay more for car insurance than the national average of $880 and New York State's average of $1185.
Swanson found that New York Central Mutual Fire, Progressive and Geico were Buffalo's top three cheapest insurance options.
If you don't want to shop around, Consumer Reports recently shared that you can:
- Increase your deductible
- Bundle your auto coverage with homeowners insurance
- Report your mileage if you drive under 10,000 miles a year
- Take a defensive driving course
