2 On Your Side: Car Insurance Rates
RICK: CARS ARE SAFE ARE THAN EVER AND YET AUTO M-ENS — INSURANCE RATES ARE ON THE RISE. NEVER GOOD WHEN THEY GO UP. THE BIG FIVE INSURERS ARE ASKING FOR INCREASES RANGING FROM FIVE TO ALMOST SEVEN PERCENT, AND INDUSTRY EXPERT SAYS GREED IS E ISN'T TO BLAME. FROM REAR VIEW CAMERAS AND HIGH-TECH MONITORS TO COMPUTERS THAT RESPOND TO COMMANDS, CARS NOW COME WITH MORE TECHNOLOGY THAN EVER BEFORE, AND IT TURNS OUT THAT IS HELPING TO DRIVE UP INSURANCE RATES. FIXING THE CARS WITH ALL THE NEW TECHNOLOGY CAN BE MORE EXPENSIVE. JANET OF THE INSURANCE INFORMATION INSTITUTE ACKNOWLEDGES CAR INSURANCE RATES ARE ON THE RISE. NATIONWIDE THEY CLAIMED NEARLY EIGHT% PERCENT LAST YEAR, ONLY TWICE THE INCREASE IN A TYPICAL YEAR. RATES HAVE GONE UP, INCREASED BY 10%. THE REASON? WELL, CARS ARE GETTING MORE EXPENSIVE TO FIX AND THANKS TO RISING HEALTHCARE COSTS SO ARE PEOPLE INJURED IN ACCIDENTS.
BUT THE PRIMARY REASON RATES ARE ON THE RISE, ACCORDING TO III — WE HAVE MORE CARS ON THE ROAD NOW, SO WHEN MORE CARS ARE ON THE ROAD WE'RE HAVING MORE ACCIDENTS. REPORTER: ACCORDING TO THE RECENT INDUSTRY FIGURES INSURERS PAID OUT 7.5 BILLION MORE THAN THEY MADE FROM PREMIUMS, THANKS TO MORE ACCIDENTS, RISING HEALTHCARE AND HIGH-TECH CARS. INSURERS ARE RAISING RATES SO THEY HAVE THE RIGHT AMOUNT OF MONEY TO PAY CLAIMS AT THE END OF THE DAY. EVERYONE WANTS MORE TECHNOLOGY AND MORE THINGS, GOING TO COST EVERYBODY AT THE END OF THE DAY.
HERE IN CALIFORNIA INSURANCE COMPANIES CAN'T RAISE RATES WITHOUT THE APPROVAL OF THE INSURANCE COMMISSIONER. NOW IS THE TIME TO PRICE COMPARE AND LOOK AROUND AND BUNDLE THINGS, AUTO AND HOME AND SAVE MONEY. PAT: WHENEVER THE COME UP WITH WAYS TO MAKE CAR MOWS VIABLE, SAFE, EFFICIENT, WE TILL HAVE TO PAY — STILL HAVE TO PAY. ALWAYS PAYING. PAT: CAN "2 ON YOUR SIDE" HELP YOU? E-MAIL US WITH YOUR PROBLEM OR.
