I know it’s a tough sell, but I’m willing to bet that if you’re planning on a big trip in the next few years, you’re going to need car insurance.
The National Automobile Dealers Association reports that more than 60% of car owners will need it.
That’s up from 50% in 2013.
In fact, the industry expects more than 2 million Americans to need it by 2020.
So, why is this so important?
First, insurance companies have to be able to keep up with the ever-increasing demand for coverage.
They’re looking for ways to cut costs, like lower premiums, less deductibles, or no out-of-pocket expenses at all.
Second, the average age of auto insurance claims is also getting older.
According to the National Automotive Dealers Assn., the average claim for new cars filed in 2018 was 45.9 years old.
That was up from 43.6 years in 2018, but it’s still not that far off from the peak of 43.9 in 2010.
Third, the rate of claims is rising as more people drive less.
As you might expect, younger drivers are getting the most claims, with an average of 5,569 claims filed in 2017, up from 4,977 in 2016.
Finally, while the average price per claim has been falling over time, rates have been rising at a higher rate than the average of inflation.
According a 2016 study by the Insurance Institute for Highway Safety, claims on new and used vehicles rose from $2,971 in 2000 to $2.79 billion in 2018.
That translates to an average increase of 10.8%.
So how much should you be paying?
You can expect to pay between $1,000 and $3,000 per claim depending on the type of car, how much you drive, and whether you’re under 24.
That is, you’ll pay $1.50 to $3.00 more per claim if you have a car with a sticker price of $35,000 or less.
But you can expect more than double that if the car is under $40,000.
What about your car?
If you’re the type who wants to drive a luxury vehicle like a Mercedes-Benz S600 or a BMW X3, you can get $2 million in car insurance with no deductible.
That means you’ll save a little over $5,000 each year.
If you have any concerns about your health, or your ability to afford a vehicle, you may need to consider buying a higher-end vehicle like the Nissan Pathfinder.
The Pathfinder comes with a $27,500 deductible, while other models have a $18,000 deductible.
How to compare car insurance rates: You can compare rates on many of the major car insurance companies here.
You can find a list of all the major insurers here.
If you have questions about car insurance, call 1-800-745-3000.